German luxury automaker Mercedes-Benz has set a hectic pace for itself in India this year. The company is going into overdrive launching three new models within three months, starting with its luxury sports utility vehicle GL on May 16 in Delhi, then a diesel model in B Class and the launch of its globally popular A-Class hatch range.

Mercedes-Benz sees 2013 as the year of an ‘offensive’ as it expands its portfolio, offers enhanced ownership experience, lowers cost of ownership and doubles its manufacturing capacity.

Interacting with Business Line during his visit to the city, Eberhard H. Kern, Managing Director and CEO of Mercedes-Benz India, said: “Mercedes is a fascinating brand. It has set a goal to come out with 13 new models by 2020, which are altogether new models without any parallel today. A number of them will come to India.”

Mercedes is upbeat on India as it widens presence in new categories. Excerpts.

You have had a relatively subdued year in 2012 but seem to be gearing up for a hectic season ahead.

We are doubling the manufacturing capacity by the year-end. This will take the total capacity to 20,000 vehicles a year. Last year, we expanded the paint facility. In all, we have invested about Rs 850 crore in the manufacturing capacity and our dealerships have invested about Rs 550 crore so far.

How do you see the market unfolding for you this year?

The overall automotive market has been weak. After a double-digit growth for some time, it has slowed down. But for Mercedes, we registered a growth of about 5.3 per cent during the first quarter of 2013 registering sales of 2,009 vehicles. This is significant in the backdrop of the fact that we are not present in all segments where some of the competition offers new models. The S, C, E and ML Class are all doing well.

What about expanding the portfolio?

Over the next three months we will launch three new models and expect to add more models. To start with, we will launch the new sports utility vehicle GL, considered in the S class league, on May 16 in Delhi. This will be followed by the launch of diesel variant of B class and luxury A Class in both petrol and diesel variants.

The stylish and sporty A class will be in a league in itself attracting the young category of buyers with increasing income levels.

For the launch of GL Class, tennis star Boris Becker will come to India. He is associated with the Mercedes brand since long. He actually has two car dealerships.

How do you see the luxury market unfolding?

The luxury car market at about 31,000 units is 1.2 per cent of the 2.6-million passenger cars. But this is projected to touch four per cent of the expanded market by 2020 offering big scope for growth.

Having served in several markets such as Germany, Russia and Taiwan, I believe the Indian market is like that of Russia about seven years ago. The Russian market was barely 4,000 units then but has grown to 40,000 units.

> rishikumar.vundi@thehindu.co.in

Related Topics