Mercedes-Benz Expects India to Become its Third Biggest Market in its 'Region Overseas'
Mercedes-Benz, the renowned German carmaker, foresees India becoming its third-largest market in the 'Region Overseas' within the next 2-3 years. Despite currently ranking fifth in the region after Japan, South Korea, Australia, and Turkey, the company aims to bridge the sales gap of around 8,000 units per year with Turkey. Mercedes-Benz AG's Head of Region Overseas, Sagree Sardien, emphasized India's strategic importance, citing the country as the brand's market number five, out of 118 markets worldwide.
Sardien expressed confidence in achieving this target, attributing it to the robust demand for luxury products in India. Highlighting India's significance for the future, she pointed out that the company has witnessed double-digit growth in sales of high-end models over the past few years. Mercedes-Benz plans to introduce 12 new models, including three battery electric vehicles, in the Indian market this year.
As part of its expansion strategy, the carmaker intends to establish sales outlets in 10 new locations, reaching from Jammu to Kottayam. Sardien underscored India's slow but steady progress in adopting electric vehicles (EVs), noting that 4% of the company's total sales in the country come from EVs. She expects double-digit growth in electrification within the Indian market, aligning with the brand's commitment to an electric future.
Mercedes-Benz India achieved its highest-ever sales of 17,408 units in 2023. While Sardien acknowledged the gradual pace of the electrification journey in India, she reaffirmed the company's commitment to an electric future, with 12 new models slated for launch this year. Sardien believes the luxury car market in India could reach the 1 lakh unit mark by the end of the decade, contingent on factors such as customer transition from combustion engines to electric vehicles. Currently, the luxury car market in India stands at around 47,000 units annually, representing a small fraction of the overall passenger vehicle segment, which surpassed 41 lakh units last year.
