Mercedes-Benz India eyes greater than 30% gross sales development backed by heavy demand for luxurious automobiles

MD and CEO Martin Schwenk famous that the semiconductor difficulty was not utterly resolved

MD and CEO Martin Schwenk famous that the semiconductor difficulty was not utterly resolved

With an order backlog of seven,000 models, its highest ever, Mercedes-Benz India is anticipating to shut this yr with a greater than 30% development in gross sales in contrast with final yr as demand for its autos have been on the rise, mentioned MD and CEO Martin Schwenk. This was compared to to the posh automotive trade development of 8-10% per yr.

“We’ve got seen superb gross sales to this point. We’ve got very excessive order e-book. We’ve got seen excessive festive season demand since July and August,” Mr. Schwenk mentioned in an interview.

“We’re ramping up on the availability facet. This festive season will likely be top-of-the-line we’ve ever seen in India,” he added. “We don’t see any cooling impact on the demand which is fairly wholesome,” the MD mentioned.

Attributing the demand pull to the product portfolio, he mentioned, “Thus far we’ve reported 30% greater gross sales as in comparison with the identical interval final yr.”

“Once more, on the demand facet, will probably be considerably greater. In phrases of gross sales, the outlook is equally constructive for your complete yr,” he mentioned.

“This yr ought to be our greatest yr which we had in India to this point and the indicators are very constructive,” he added.

Stating that offer disturbances have been nonetheless on, he mentioned the semiconductor difficulty was not utterly resolved. “So relying on mannequin we nonetheless have 4 to five months of ready interval and eight to 10 months in case of bigger SUVs,” Mr. Schwenk mentioned.

“Most likely the lengthy ready interval wouldn’t go away, however enchancment can be seen in subsequent 6 months. However this yr, I’m positive we’ll face constraints,” he mentioned.

He mentioned regardless of the [supply related] points, “we’re promoting higher than the earlier yr and on the identical time including web orders and most clients are prepared to attend to get our merchandise.”

On the way forward for Inside Combustion Engine (ICE) autos, he mentioned, “I personally suppose autos with standard engines will run for a few years and most clients are choosing these. These automobiles will likely be up to date and until the tip of this decade there will likely be vital quantity in all ranges.”

“However it’s clear that the transition to electrical automobiles has already began. In 5 years, 25% of our complete quantity will likely be electrical automobiles. That share will speed up in the direction of the tip of the last decade. Among the substitute fashions sooner or later will likely be electrical. The market has not but tilted utterly to electrical,” he mentioned.

Retaining in thoughts the longer term, the corporate will on Friday roll out the domestically produced electrical luxurious automotive EQS [from its plant in Chakan] which will likely be priced decrease than the imported model.  “We consider this automotive will promote extra so we’ve determined to go for native manufacturing. With this we’ll begin the journey for changing ICE autos with electrical,” he mentioned.

In January 2020, the corporate had unveiled the EQ model for its vary of electrical autos. By finish of this yr, it’s going to have 4 fashions of electrical autos and can carry on including to develop the portfolio, he mentioned.

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