Mumbai, July 11, 2013: A weakening rupee is an area of concern for the management of Mercedes-Benz India (MBIL) and a 10-12 percent change in rates may well force the carmaker to look at an increase in prices of its range in 2014, said Eberhard Kern, managing director and CEO.

Speaking at the B-class diesel launch in Mumbai on July 11, Kern added that MBIL has not taken a decision on whether to carry out local assembly of either the A-class petrol (launched in May 2013) or the B-class petrol. In any case, the vehicle is in demand in other markets which are asking for greater allocations. MBIL will, however, kick off local assembly of the GL-class SUV in August. The company currently assembles the S, E, C and ML-class vehicles.

Mercedes will also invest Rs 250 crore (as part of the overall investment of Rs 850 crore) to double capacity to 20,000 units, said Kern.

The B-class (B180 CDI) which will retail at Rs 22.6 lakh (ex-showroom, Mumbai) is the fifth MBIL launch in 2013. It also plans to launch a luxury compact SUV and saloon as part of Merc's new range; this will, by 2014, account for 40 percent of sales.

Kern said MBIL expects double-digit growth in 2013 but gave no figures for sales of recent launches. The A-class petrol got about 400 bookings in the first 10 days, a record of sorts for the company. The vehicle has a two-month waiting period. The B-class petrol, which debuted 10 months ago, has sold 500 units and its buyers include first-time Merc owners and professionals.

As regards growth in the luxury car market, Kern said MBIL hopes that four percent of the seven million units sales forecast in 2020 will comprise the luxury car sector. He also said the pre-owned business is a future growth area as trade-in gains significance.

The B180 CDI Style is based on Mercedes’ MFA architecture which also underpins the A-class. It offers a mileage of 18.98kpl and has a 50-litre tank. MBIL sold 7,128 units in 2012. Of this 3 percent were taken by customers on lease. Going forward, the company hopes to add 10 new outlets to its existing 57 in both metros and Tier 1, 2 cities.

BRIAN DE SOUZA