The German luxury carmaker has also reported its highest-ever monthly sales in March 2024, as well as registered a 10 percent year-on-year growth in FY24 volumes.
11 Apr 2024 | 4948 Views | By Mayank Dhingra
German luxury carmaker Mercedes-Benz India has reported its quarterly sales for Q1 (January-March) CY24 period, and the company has achieved its best-ever three-month volumes of 5,412 units, registering a 15 percent year-on-year (YoY) growth (Q1 CY23: 4,697 units).
The marque brand has also reported its full-year performance for FY24 ...
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German luxury carmaker Mercedes-Benz India has reported its quarterly sales for Q1 (January-March) CY24 period, and the company has achieved its best-ever three-month volumes of 5,412 units, registering a 15 percent year-on-year (YoY) growth (Q1 CY23: 4,697 units).
The marque brand has also reported its full-year performance for FY24 – April 2023 to March 2024 period – with the company recording its highest-ever fiscal volumes of 18,123 units (FY23: 16,497 units), and registering a 10 percent YoY growth in India. The carmaker also claims to have recorded its highest-ever monthly sales in March 2024.
Mercedes-Benz India attributes the triple accomplishments of its robust monthly, quarterly, as well as financial-year performance to a strong consumer preference for the luxury brand in the premium car segment in India. According to the company, this success is buoyed by an attractive product portfolio, elevated customer moments enabled by delightful ownership experiences, and personalised finance innovations. “These results clearly demonstrate our leadership. Almost one in every two luxury cars sold today in India is a Mercedes-Benz,” said Santosh Iyer, Managing Director & CEO, Mercedes-Benz India.
Furthermore, the company attributes a consistent performance across the three segments – core, luxury, and top-end vehicles (TEVs) – of its portfolio to be a key driver of its strong results. One out of every four Mercedes-Benz cars sold belongs to the TEV segment – which the company categorises as cars having a price tag of more than Rs 1.5 crore.
“If we look at the maturity of the luxury car market, it is clearly visible that customers are preferring top-end cars. One of the key catalysts is also our financing arm - Mercedes-Benz Financial Services - which has reached over 50 percent penetration in our sales, and its current financed value stands at Rs 8,000 crore. With our ‘Star Agility’ financing programme comprising more than 50 percent of our new car sales, customers are opting for new-age financing solutions, and not traditional hire-purchases,” Iyer pointed out.
While the entry segment, which comprises the A-Class sedan and GLA SUV - was able to register a strong presence with a 15 percent sales contribution in Q1 CY24, the company’s ‘Core Segment’ comprising the C-Class, LWB E-Class sedans and the SUVs contributed a significant 60 percent to the overall sales volumes of Mercedes-Benz in the January to March 2024 timeframe. SUVs comprised 60 percent of the company’s total sales in Q1 CY24, with models like the GLA, GLC, GLE, and GLS commanding strong buyer demand.
The TEV segment also continued to command 25% of Mercedes-Benz’s overall sales in India, firmly reiterating the continued customer preference for top-end luxury and exclusive vehicles like the GLS, S-Class, Mercedes-Maybach, the EQS, G-Class and the AMG range.
Mercedes-Benz India’s BEV portfolio registered a 130 percent YoY growth in Q1 CY24, with the company claiming receiving a strong response to the EQE SUV, in addition to the EQB SUV and the top-end EQS luxury sedan. The penetration of the BEV portfolio grew more than 6% from earlier 4% in Q1 2024. Mercedes-Benz India plans to expand its BEV portfolio by introducing three new models over the next three quarters of CY24.
“With EVs now comprising 6 percent of our total volumes, we plan to double our EV range this year. However, there still needs to be a lot of work done in the areas of charging infrastructure and consumer awareness to further drive EV adoption in India,” Iyer said.
The company will introduce a total of 12 new models in CY24, of which, it has already launched three cars. It aims to further strengthen the TEV segment, and plans to introduce the AMG S63 E Performance and the AMG C63 E Performance F1 Edition in the coming months. Mercedes-Benz India also plans to strategically expand its network with two new facilities in Delhi and Mumbai in April 2024. The company will also transform 25 of its existing outlets to its new MAR 20X showroom concept, along with expanding its service network to 10 new cities like Jammu, Udaipur, Kottayam, Amritsar, Agra, Valsad, and Patna in CY24.