Mercedes-Benz India has reported exceptional sales performance in the second quarter, setting new benchmarks in the luxury automotive segment. The German automaker's Indian arm has demonstrated strong market resilience and consumer confidence, particularly in the high-end vehicle category.

Record-Breaking Performance

Mercedes-Benz India achieved its highest-ever quarterly sales in Q2, with a total of 5,119 units sold. This milestone was further accentuated by a remarkable September performance, where the company registered a 36% year-on-year growth. The 9-day Navratri period alone saw sales exceeding 2,500 units, indicating a robust festive season demand.

Sales Highlights

Product-wise Performance

The company reported strong demand across its product range, with several models achieving their highest-ever monthly sales:

• Long Wheelbase E-Class
• GLC
• GLE
• GLS
• G63 AMG SUVs

Electric Vehicle Segment

Mercedes-Benz's commitment to electrification continues to show progress:

• Battery electric vehicles maintained an 8% penetration of overall sales
• 10% year-on-year growth in EV sales
• Record sales for the EQS SUV

Market Dynamics

While the luxury segment showed robust growth, the entry-level luxury segment experienced a decline. This shift is attributed to increased competition from lower-priced products in the market.

Management Perspective

Santosh Iyer, Managing Director of Mercedes-Benz India, attributed the stellar performance to multiple factors:

1. Positive customer response following GST 2.0 reforms
2. Pent-up demand in the luxury segment
3. Strong performance across core luxury and top-end luxury vehicles

Future Outlook

With a healthy order bank of around 2,000 cars, Mercedes-Benz India anticipates continued momentum during the upcoming festive season. The company's diverse product portfolio, spanning from core luxury to top-end vehicles and electric offerings, positions it well to cater to varying consumer preferences in the luxury automotive market.

This record-breaking performance by Mercedes-Benz India not only highlights the resilience of the luxury car market but also indicates a potential shift in consumer behavior towards premium products. As the festive season approaches, it will be interesting to observe if this upward trend in luxury vehicle sales continues and how it might impact the broader automotive sector in India.

Mercedes-Benz India, the luxury automaker, is contemplating a price revision for its vehicles, potentially returning to pre-GST rate cut pricing levels. The move comes as a response to the recent depreciation of the dollar, which has impacted the company's cost structure.

Local Manufacturing and Future Plans

Santosh Iyer, CEO of Mercedes-Benz India, revealed that:

• Over 90% of the cars sold in India are manufactured locally
• Only 10% of vehicles are imported

This high level of local integration underscores the company's commitment to the Indian market. Iyer also highlighted the significant presence of Mercedes-Benz in India's tech sector, with 10,000 developers in Bengaluru working on the company's future technologies.

Sales Milestone and Market Dynamics

The luxury carmaker is optimistic about reaching its next sales milestone of 100,000 Mercedes-Benz vehicles in India. However, the company remains vigilant about market dynamics that could influence this goal.

Concerns Over Potential Tax Increases

Iyer expressed concerns about potential state government tax increases that could undermine the benefits achieved through GST reforms. This highlights the ongoing challenges in India's evolving tax landscape and its impact on the automotive sector.

Infrastructure as a Growth Driver

Mercedes-Benz India views infrastructure development as a key growth driver for the automotive sector. The company believes that improvements in infrastructure could significantly boost the demand for vehicles across segments.

Implications for Consumers

If Mercedes-Benz proceeds with the price revision, luxury car buyers in India may face higher costs for their desired vehicles. This potential increase underscores the impact of global economic factors on the domestic luxury car market.

Conclusion

As the potential price revision approaches, industry observers and potential buyers will be keenly watching Mercedes-Benz India's pricing strategy, which could set a precedent for other luxury automakers in the country.