Mercedes-Benz is expecting to clock double-digit growth in sales in India this year, despite concerns that a weaker rupee will raise car prices, according to the head of the company's local unit.
According to Santosh Iyer, managing director for Mercedes-Benz India, the German luxury carmaker's sales in India increased 41% last year to 15,822 vehicles, the highest ever in the country, and it has an order backlog of around 6,000 vehicles.
A weakening Indian currency, which could force Mercedes to raise domestic prices as imported components become more expensive, is one risk to the growth of India's luxury car market, he says.
The rupee fell 10% against the dollar in 2022, the most since 2013, making it one of Asia's worst performing currencies.
"One of the biggest risks we see for us is the exchange rate. With the rupee weakening a bit more, that will lead us to more price increases. So that's some headwind we see when it comes to the growth potential," Iyer said.
"But we are starting the year with a very healthy order bank and that gives us the confidence of a double-digit growth even for 2023," said Iyer.
Mercedes plans to launch ten new cars in India in 2023, the majority of which will cost more than 10 million rupees ($120,000), the top-end segment of which is expected to grow 69% in 2022. New gasoline vehicles, electric vehicles (EVs), and plug-in hybrids will be introduced.
In 2022, the company will launch three EVs in India, including a locally assembled electric version of its flagship S-Class sedan. EVs are in high demand, with Indian customers having to wait four to six months after booking their vehicles. Iyer hopes to cut this time down to two to three months before launching more EVs.
Renault is considering building a mass-market EV in India, according to Reuters, in a renewed push into a market where sales of such vehicles are expected to grow quickly from a small base.
Tata Motors, a domestic automaker, and foreign players such as Stellantis and Hyundai Motor have also announced EV launches.
Mercedes has experienced some disruption due to a shortage of parts and delayed shipments caused primarily by geopolitical issues, the European energy crisis, and pandemic-related lockdowns in various parts of the world, according to Iyer.
He predicted that the situation would return to normalcy in 12 to 18 months.
(Source:www.economictimes.com)
According to Santosh Iyer, managing director for Mercedes-Benz India, the German luxury carmaker's sales in India increased 41% last year to 15,822 vehicles, the highest ever in the country, and it has an order backlog of around 6,000 vehicles.
A weakening Indian currency, which could force Mercedes to raise domestic prices as imported components become more expensive, is one risk to the growth of India's luxury car market, he says.
The rupee fell 10% against the dollar in 2022, the most since 2013, making it one of Asia's worst performing currencies.
"One of the biggest risks we see for us is the exchange rate. With the rupee weakening a bit more, that will lead us to more price increases. So that's some headwind we see when it comes to the growth potential," Iyer said.
"But we are starting the year with a very healthy order bank and that gives us the confidence of a double-digit growth even for 2023," said Iyer.
Mercedes plans to launch ten new cars in India in 2023, the majority of which will cost more than 10 million rupees ($120,000), the top-end segment of which is expected to grow 69% in 2022. New gasoline vehicles, electric vehicles (EVs), and plug-in hybrids will be introduced.
In 2022, the company will launch three EVs in India, including a locally assembled electric version of its flagship S-Class sedan. EVs are in high demand, with Indian customers having to wait four to six months after booking their vehicles. Iyer hopes to cut this time down to two to three months before launching more EVs.
Renault is considering building a mass-market EV in India, according to Reuters, in a renewed push into a market where sales of such vehicles are expected to grow quickly from a small base.
Tata Motors, a domestic automaker, and foreign players such as Stellantis and Hyundai Motor have also announced EV launches.
Mercedes has experienced some disruption due to a shortage of parts and delayed shipments caused primarily by geopolitical issues, the European energy crisis, and pandemic-related lockdowns in various parts of the world, according to Iyer.
He predicted that the situation would return to normalcy in 12 to 18 months.
(Source:www.economictimes.com)
