India’s largest luxury car maker and market leader Mercedes-Benz India is on a roll. The Pune-based company has maintained its strong sales momentum and lead, having recorded its highest-ever Q2 results in India.
The three-pointed star retailed a record 7,573 units in the January-June 2022 period, growing by a robust 56% YoY (January-June 2021: 4,857 units). What helped accelerate numbers was Mercedes-Benz India also notching its highest-ever Q2 (April-June) sales thanks to new product launches, sustained demand for existing products and services, and the dynamic omni-channel customer journey created through the ‘Retail of the Future’ strategy. The new retail approach, part of its ‘Reimagine Excellence’ programme, is similar to a D2C (direct-to-consumer) model, wherein Mercedes-Benz India directly invoices vehicles to customers.
LWB E-Class remains best-seller, GLC highest-selling SUV
The spate of new launches in the first-half of CY2022 – New C-Class, New E-Class, New S-Class and GLA, GLC and GLE SUVs – have contributed significantly to Mercedes-Benz’s continuous growth. Meanwhile, the robust demand for top-end models like the S-Class, S-Class Maybach, GLS as well as the AMGs remains strong. There was also strong market demand for the New C-Class, which contributed to the overall volume growth of the brand.
While the LWB E-Class remained the single highest selling model for Mercedes-Benz in India, the GLC remains the highest selling SUV for Mercedes-Benz in India followed by the GLA.
Over 6,000 bookings in hand
That Mercedes-Benz India is headed for another record year of sales can be gleaned from the fact that the carmaker currently has a total order bank over 6,000 units.
The current waitlist of key CKD models (depending on markets):
- A-Class Limousine: 2-3 months
- C-Class: 2-3 months
- E-Class: 2-3 months
- S-Class: 3 months
- S-Class Maybach S 580: 4-5 months
- GLA: 4-5 months
- GLC: 1-2 months
- GLE: 4 months
- GLS: 10-11 months
Mercedes-Benz India’s strong performance comes in the face of growth headwinds like continuing global supply side challenges leading to longer waiting periods and continuous increase in operating costs.
Martin Schwenk, MD and CEO, Mercedes-Benz India commented, “Our highest ever Q2 is a result of the positive customer sentiments, a young product portfolio across segments and successful rollout of ‘Retail of the Future’. This sales record becomes even more significant against the backdrop of continued supply side challenges, triggered by global developments and also local market challenges. It is highly satisfying to witness the unmatched aspiration and desire for a Mercedes-Benz, resulting in consistent demand for our attractive products across segments and body types.”
He added, “Though we expect the semi-conductor shortage to continue in coming months, it remains our endeavour to scale up our production and deliver the cars to the customers and reduce the waiting period. We have a solid order bank of more than 6,000 cars which makes our market outlook very positive. Q3 will be highly exciting as we line-up some of the most anticipated Mercedes-Benz models from our global portfolio, for our Indian customers, creating a completely new benchmark.”
Smart uptick in the luxury car market
Mirroring the global trend, the luxury passenger vehicle market in India is seeing a strong rebound in demand. Mercedes-Benz, like other luxury carmakers in India, is benefitting from the overall uptick in this vehicle segment. Earlier this month, BMW India reported recording its best-ever half- yearly sales in the first half of CY2022. Its passenger car divisions – BMW India and Mini – clocked cumulative sales of 5,570 units between January and June. While BMW models went home to 5,191 buyers and registered a YoY increase uptick of 65.4% (H1 CY21: 3,138), Mini sold 379 units to record 50% percent YoY growth.
Clearly, in India, the luxury car segment leader is driving towards a record year in CY2022. At half-way stage, with 7,573 units sold, Mercedes-Benz India has already achieved 67% of its entire CY2021’s sales of 11,242 units. And it currently has its highest-ever order bank of over 6,000 units in the bag.