Mercedes widens product portfolio to take on Audi, BMW

German luxury car maker Mercedes-Benz, largest player in this segment in India, has expanded its product offering with the launch of 11 products this year, to maintain its lead over competitors Audi and BMW.

On Wednesday, it launched two new convertibles, priced (ex-showroom, Delhi) at Rs 60 lakh and Rs 2.25 crore, respectively.

Despite a decline in volume this year, the company remains upbeat. “In spite of several market challenges, we have been able to remain the undisputed market leader by selling 9,924 units in the January-September period of 2016. With new products, especially the SUVs, combined with network expansion and after-sales initiatives, we aim to continue with this momentum,” said Roland Folger, managing director at Mercedes-Benz India.

The January-September volume is lower by 1.5 per cent against the corresponding period of 2015. Mercedes attributes this to the uncertainty around diesel vehicles, imposition of cess in the Union Budget and then by the Supreme Court (for sales in the National Capital Region).

Mercedes-Benz overtook Audi in India sales during 2015 when it sold 13,502 vehicles (growing 32 per cent over 2014). Audi’s number for the current calendar year has not been announced. BMW, the third biggest, has also not announced sales data this year.

The ban imposed by Supreme Court on diesel vehicles (2,000cc and above) in the NCR last December impacted sales of luxury cars, most of which are diesel-powered. The ban was lifted in August 2016, after companies agreed to pay one per cent of the car price as cess. They have for the past year been working on making all their products available in petrol engines, too. In fact, both products launched on Wednesday, the S-Class and C-Class Cabriolet, operate on petrol.

“We want to remain the undisputed market leader in the country,” said Folger. "Market research told us last year that buyers seek petrol variants and we started working on it."

The ban in NCR quickened the process. Folger said the contribution of petrol in total sales had increased to 30 per cent, from 20 per cent a year before. The company said it had asked the government to reconsider imposition of cess, along with the new goods and services tax rate on luxury cars.

Mercedes Benz India Limited