Mercedes-Benz and BMW beating their own targets in India
Mercedes-Benz and BMW are mainly only affordable to the rich in India. There seems to be more of an appetite for the luxury car brands in the country. Both are taking advantage of the situation and setting higher targets month upon month.
BMW India President Andreas Schaff highlighted that the buyers of their vehicles in India are very wealthy but pricing of the vehicle needs to be done carefully. He said “It’s the base segments that are the worst affected, as buyers of these cars are more price-sensitive than those of luxury cars. Our buyers are extremely wealthy, so less dependent on macro-economic activities. We had put up targets for this year and almost every month, we have outperformed the estimates.”
Mercedes-Benz echoed those claims of BMW, saying sales this year have beaten what was originally set out. Head of India operations Peter Honegg said “We will achieve our targets this year. We will sell around 7,000 units this year, compared to last year’s sales of 5,600 units. It’s definitely above our internal targets.”
Honegg recognised the importance of diesel engines rather than petrol as the continuous rise of fuel prices have been too much for people to cope with. He said “We have changed our product portfolio in the direction of diesel. Earlier, we used to sell 30-40 per cent petrol products. Now, the share of petrol is just 20 per cent. We are offering more and more diesel products. The first five-six months the market will be flat and, then, we will come back to a normal growth rate next year,”
Passenger car sales dip
Overall passenger car sales have fallen by 5% in the country between April and October. Audi, BMW and Mercedes-Benz have managed to prosper during such times and have recorded high growth rates. Honegg said that although the company managed to grow in the first six months of the year, the growth rate declined during the second half.
He said “It’s not that we are not impacted at all. There has been high growth rate in the first six months and then, in the second half, the growth rate has been shrinking, though definitely not to the extent of the total market.”
Can both Mercedes-Benz India and BMW India build on from their great success and beat expectations next year?