Mercedes Benz India doubles profits to $100 million, turnover crosses $1.2 billion

A sales growth of over 37 percent in FY23 also helped the turnover jump 65 percent, with the revenues exceeding $1.2 billion or Rs 10,000 crore mark.

By Ketan Thakkar and Shahkar Abidi calendar 19 Oct 2023 Views icon8183 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Mercedes Benz India doubles profits to $100 million, turnover crosses $1.2 billion

Mercedes Benz India, the country’s largest luxury car maker, has almost doubled its net profit for FY23, crossing the $100 million mark or Rs 841 crore for the first time ever.

A sales growth of over 37 percent in FY23 also helped the turnover jump 65 percent with the revenues exceeding $1.2 billion or Rs 10,000 crore mark.

During the year under review, Mercedes Benz India achieved a sales volume of 16,497 passenger cars (including 689 units of CBUs) in FY 2022-23.

Reviewing the sales performance for FY23, Santosh Iyer, MD and CEO, Mercedes-Benz India had earlier said, “Our best-ever fiscal underlines the strong desirability for Mercedes-Benz products among the discerning Indian luxury car customers. The significant growth in the TEV (Top End Vehicle) segment, as well as the increased preference for our luxury EVs reflects the changing profile of Mercedes-Benz customers in India. Our customers increasingly prefer to combine sustainability and luxury at the highest level. With this sales success, we continue our product offensive, introduce new initiatives, and remain obsessed with enhancing our customer experience, remaining the most desirable luxury brand in India.”

During the last fiscal year, the company introduced the new C-Class in the assembly line as an SKD model under its new modular rear axle architecture (MRA2) platform. This was done along with manufacturing of engines in 2 variants - OM654M - 4 cylinder Diesel Engine and M254 - 4 cylinder Petrol Engine 2.

In the second half of the year 2022-23, the Company introduced its first fully electric vehicle i.e. EQS (V297) vehicle for which new technologies were introduced i.e. AC and DC chargers + Battery S/A Area + Surveillance Area + New Marriage Framer and Existing Hangers were upgraded for electric vehicles, mentioned the Directors' report, sourced from market intelligence firm Tofler.  

“EQS being the first electric vehicle, a High Voltage Organisation was set up to look out for safety topics and compliance as per standards. The EQS is getting manufactured along with ICE vehicles i.e. E-Class + S-Class and Maybach with the same trim and mechanical line from the start of Production,” stated the Directors' report.

Interestingly, India which is a model assembly base for Mercedes Benz globally also received an export order of BR167 LHD vehicles for the European Market.

“These vehicles were built by adapting existing lines in the Body shop, Paint shop and Assembly line. The startup was concluded in the first quarter of 2023,” as per a note in the Directors' report.

The company installed the new Body Shop line for the X254 model, added the report.

On the Human Resources Development and industrial Relations front, the company continued its varied initiatives rolled out by the HR department.

Under the aegis of Journey 2025, various cross functional teams worked on different projects around building organisational culture, digital upskilling for employees, aspects of process optimisation, increase in employee recognition, efficient communication across the organisation and revamp of workplaces.

With sustainability at the core of future growth strategy, efforts were also made to spread awareness among employees on the environment and its sustainability.

Activities during Earth week or Environment week helped in spreading sensitivity and awareness to promoting upcycling or recycling initiatives for a sustainable future.

“Notable among the activities was the 'Bio-Diversity' walk, highlighting various concepts or projects, be it the bio-diversity park, the solar implementation or the EV vehicles that are undertaken across the company to achieve our goal of being a 'Green Organisation'," added the Directors' note.  

The year also saw a focus on diversity practices with the appointment of women operators in production, and cross-functional teams working on projects to increase diversity and inclusion awareness. Complementing this, were the sessions on POSH awareness and sensitisation across the organisation. 

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