Mercedes Benz continues its ‘India offensive’ with the launch of GL-Class sports utility vehicle, its sixth model from last October. The German luxury carmaker plans to introduce more models by next year.
Upbeat on India, the automaker expects a growth of over 15 per cent (3,765 vehicles) during the first-half of this year riding on new launches. This is in spite of the tough economic conditions and the overall stagnation in the country’s automotive industry.
As it gears up for its next growth phase, Mercedes will have access to a flexible, larger manufacturing base at Chakan in Maharashtra.
The company will complete the expansion project by early 2014, taking the capacity up from 10,000 vehicles to 20,000 a year. While the existing capacity is yet to be fully used, the auto giant does not want to be caught in facing a capacity constraint. Eberhard H. Kern, Managing Director, Mercedes-Benz India, said the company has had a good run this year and expects to keep the momentum as there is growing demand for its recently launched cars, including A and B segments.
“In fact, there is a wait period of 2-3 months depending on the location. Therefore, we have requested the headquarters to allot us more kits. However, these cars have been doing well all over the world and the demand continues to grow. That is the big challenge,” said Kern.
The company rolled out its made-in-India E-class in 1995 and since has added S and C class models to its portfolio. Last year, it added the ML Class and recently the GL-Class, both SUVs. “Local manufacturing enables us to offer them faster,” he said.
Mercedes is working on bringing down the total cost of ownership of its vehicles by offering integrated services, including financial that bundles insurance and leasing features.
Best sellers
The Indian market for luxury cars is changing. The E-Class has emerged the best seller. Now there is demand for larger SUVs such as ML and GL Class. The latest two launches of A and B Class in the compact luxury segment have created big demand, said Kern. The company is looking to add a smaller sports utility vehicle and a sedan.