Mercedes-Benz Strategy To Regain India Leadership


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The three pointed star is looking to regain its stronghold in the Indian luxury car market with sub Rs. 25 lakh products.

Mercedes Benz India, part of the German luxury carmaker Daimler group, has drawn up a game changer strategy in a bid to regain the leadership position in the Indian luxury cars market by 2016, said its MD & CEO Peter T Honegg.

The Daimler company, which lost its leadership slot to BMW and Audi few years back in India, is preparing to launch entry level luxury cars in the sub Rs 25 lakh segment, a game changing segment that is growing significantly, he said.

Honegg said the company has the products in the sub Rs 25 lakh category in the European portfolio but unfortunately those models were not available in the right hand drive mode to be introduced immediately in the Indian market.

"We are little bit delayed but we are bringing in such models in the B-Class by end of this year and in the A-Class sometime next year. The whole game will change then with models with much fresher look from the design point of view compared to the competitors,"
Honegg was in Hyderabad on Thursday to launch C-Class AMG performance edition.

He said Mercedes Benz expects to take another 8-12 months to bring some of these sub Rs 25 lakh models to the Indian luxury car market and have derivatives of A-Class in 2013-14. It hopes to have the full portfolio, including the entry level models, available to the Indian consumers from 2015-16 onwards to be on par with the competitors.

Mercedes Benz India currently has a share of around 30% in the Indian luxury car market
"The regaining of market share should start from 2014 and we should be in the number one position in 2015-16,"
he said.

However, he said, in the backdrop of depreciating rupee and increasing import duties, the carmaker will focus immediately on staying profitable in the market before regaining market share in the medium term, he said. Towards staying profitable, the company has decided to hike the car prices by 5-6%.
 

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Mercedes Benz lowers its growth projections for the Indian marketThe German luxury car maker Mercedes-Benz India, which once was a ubiquitous luxury vehicle choice, is now far from that tag as its sales continue slide in the Indian luxury car market. It was reported that Mercedes has now stated that its growth expectation for the second half of the current calendar year has come down to 5-10 per cent from its earlier projection of 15-20 per cent due to the current market slowdown.

According to reports, Peter Honegg, managing director and chief executive officer of Mercedes-Benz India
"We were bullish for a 15-20 per cent growth, but seeing the current slowdown in the automobile segment, our growth projection is now limited to 5-10 per cent." It was mentioned that he pointed that the impact of the increase in import duties from to 80 per cent from 70 per cent on completely built units (CBU), the vehicles are now costing 30 per cent higher from the actual price, which is pinching the customers and a major concern for the luxury car makers.
The reports mentioned that Mercedes-Benz may consider restructuring of portfolio breakout of the petrol and diesel vehicle variants, by increasing the diesel variants.
"Last year, we have changed our diesel and petrol car manufacturing ratio to 90 per cent and 10 per cent from the 60 per cent and 40 per cent respectively two years back. And if the government changes the excise duty structure, we may further consider the restructuring,"
Honegg said. The luxury car maker has plans to launch its entry level hatchback car, Mercedes Benz B-Class, in the Indian markets by end of this year, and to launch its A- class series in 2013.
 
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Mercedes-Benz chalks out strategies to achieve top position in India

Being listed as one of the top three leading premium brands in the Indian auto market, the Germany based automaker Mercedes-Benz is targeting to capture the top spot yet again with the strategically planned launches favourable for their sales growth in the country. In India, though the auto sector is showcasing slump growth since the last few months, but the sales of the luxury brands is on a rising spree with sale of around 23,000 units annually.

With the rising foray of foreign luxury car makers, the company has been facing intense rivalry and gradually lost the peak position to BMW, still maintaining its premium stance in the country’s auto industry. As per the Daimler owned company, the position regaining strategy in the Indian auto market will be initiated with the launch of cars in the highly demand segment, entry-level luxury cars in the sub Rs. 25 Lakh segment. These cars will fall in the A-Class and B-Class range for the country.

Mr. Peter T Honegg, Managing Director & CEO, Mercedes-Benz India, commented, "The regaining of market share should start from 2014 and we should be in the number one position in 2015-16."

Mercedes-Benz is aiming to have a complete portfolio for the Indian buyers by the year 2016. At present, plans are devised to stay profitable by surging the prices of its model range owing to depreciating value of rupee and rising import duties.

The sales of Mercedes Benz in the past few years have increased by 30 per cent and the German auto maker managed to sell about 7500 units in 2011 alone. The company, at a base price of Rs. 35.90 lacs, launched Mercedes Benz C Class AMG performance edition, which in addition to other features has added sports package. Before that, it launched the revised edition of the M Class in India to a resounding response.

Off late, a gradual change in the attitude of rich Indians, especially young affluent generation, towards the luxury cars has been noticed, who seem to have inclination towards these expensive four wheelers. Mercedes Benz has set the target of reaching number one position in the coming years by banking on these newly rich people as their customers. Unlike many other auto brands that in order to boost sale introduce cars at feasible price, Mercedes, instead, has different plans. The company, so as to raise the sales volumes, has intentions of bolstering the vehicle portfolio in India. In 2012-13, the company, keeping in line with its plans of increasing the line up, will introduce new luxury cars that will boost its sales and help the company enter new luxury segments.

Source :- CarTrade - New Cars, Used Cars, Second Hand Cars, Online Car Prices India | CarTrade.com

Pic taken from other source.
 

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Within the next 2-3 years German luxury car maker, Mercedes-Benz will invest a sizeable amount in the Indian plant to augment assembly line capacity by three-four times.

In the next couple of years, German auto giant Mercedes Benz will invest around Rs 400 crore in the Indian plant to augment assembly line capacity by three-four times. This will push its investment in plant and machinery at the Indian subsidiary beyond Rs 1,000-crore.

Mercedes Benz India managing director & CEO Peter Honegg has already moved the board in Stuttgart for the additional investment.

With at least six products set to be added to its existing CKD operations--ML and GL from its existing portfolio and new introductions B, A, CLA and GLA--Mercedes needs to ramp up assembly capacity from 10,000 units per annum to 25,000-30,000 per annum by 2014-15. And that will entail additional investment of over Rs 350 crore.

At present, the company assembles C, E and S Class vehicles in India. Showcasing the B Class sports tourer to reporters at the Buddh International Circuit, Honegg said this vehicle, along with three others from Mercedes Front-wheel Architecture platform--A Class (hatch) to be launched in 2013), CLA Class in 2013 (compact SUV) and GLA Class in 2014 (small sedan)--will be produced in CKD format within a couple of years.

"We have just increased paint-shop capacity at Pune plant from 10,000 units per annum to 20,000 units at an investment of Rs 180-200 crore. With a little more investment and additional shifts, the capacity will go up to 30,000 and even 40,000 units per annum. Alongside, investment is required in creating new assembly lines," Honegg said.

By 2020-21, Mercedes will increase its plant capacity to 90,000 units per annum. The B Class is the first in a series of vehicles that Mercedes Benz has lined up to complete its portfolio and take on competitors BMW and Audi. In the past few years, Mercedes Benz has rapidly lost market share, allowing first BMW and the Audi to overtake it.
 
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Mercedes-Benz to Inaugurate the Largest Workshop by any Luxury Car Maker in India on 20th in Mumbai

Mercedes-Benz India will be soon seen launching one of the largest workshops by any luxury automobile maker in India. The Auto Hangar Work Shop, Mumbai will be launched on 20th this month. Present at the occasion will be Mr. Peter Honegg, MD & CEO, Mercedes-Benz India and Mr. Devdutta Chandavarkar, Director After-Sales Operations, Mercedes-Benz India. The new workshop will be formally inaugurated at 11:45AM. The Auto Hangar Work Shop is situated at 94-A, Saki Vihar Road, Off Chandivali, Andheri (East), Mumbai.
 
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Suprisingly shocking. [surprise][shock]

More than decade in India & till now no dealership in such a Gigantic state.
By now, Mercs realized it but took a bit too looooong time.
Yes it indeed is very surprising that the company which is present in our nation for more than a decade never had a showroom in one of the most populated state
 
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I too didnt knew merc didn't had shoroom in UP. Perhaps, up guys got fed up of travelling on cycle & elephant now. :D.
 
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German auto major Daimler today said it will start assembly of its luxury sports utility vehicles M and GL-Class from Mercedes-Benz's portfolio in India by next year.

Besides, the company will also start assembling the SUV in two South East Asian countries -- Thailand and Indonesia.

"The necessary preparations at the selected three production sites in India, Thailand and Indonesia are proceeding full steam ahead.

"Later on in the year, final assembly of the M-Class using SKD kits will start there for the respective local market," Daimler said in a statement on its website.

The kits for the SUVs are imported from Tuscaloosa in the US, it added.

"For the first time, Daimler will start the final assembly of the SUV model series for the new Mercedes-Benz M-and GL-Class outside the SUV parent plant in Tuscaloosa/ Alabama, USA," the company said.

Following the start of production of the M-Class in India, Thailand and Indonesia this year, the first units of the new GL-Class made from semi knocked down kits will be roll out from the assembly lines in India and Indonesia in 2013, the statement said.

At present, Mercedes-Benz assembles its luxury sedans C, E and S-Class at its facility near Pune in Maharashtra.

Commenting on the plans, Daimler AG Member of the Board of Management Wolfgang Bernhard said: "Our new SUVs are very popular with our customers. We expect high growth rates also in the emerging markets and, therefore, extend our local production. Thus, we open up new potential as part of our growth strategy."

Mercedes to assemble M, GL-Class in India by next year - The Economic Times
 
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Mercedes-Benz looking to economize India operations

Mercedes-Benz is seriously looking at cutting down its production costs and also swallow cost escalation in order to keep its cars affordable for customers here in India. The German company was reluctant to pass on the full extent of the price increase to customers for fear of hurting demand further, a top official said.

The German car maker’s overall sales figures fell nearly 24 per cent to 1,633 units during April-July, compared with 2,141 units sold in the previous year according to Society of Indian Automobile Manufacturers (SIAM). Total absence of cheaper products in the range of Rs 20-22 lakh has impacted the company.

The luxury car manufacturer is forced to absorb Rs 3 of every jump of Rs 10 in prices to avoid impacting retail demand which has been under pressure. It has so far increased the prices of its cars by five-seven per cent this year, which also saw changes in government's taxation policy and high inflation.

The C Class, E Class, M Class and the S Class are all assembled here in India through a completely knocked down (CKD) operation at its Chakan plant near Pune. Since the volumes of its largest selling car C Class are 2,000-3,000 units a year, the company finds it difficult to find vendors who could supply in such low numbers.

Mercedes is gearing up to launch a compact SUV in 2014-15 in India, which would be sharing the vehicle platform with a soon-to-be-launched A Class (Read : Mercedes-Benz A Class First Drive)next year. This new small SUV, which is under development presently, will be assembled in India and take on BMW’s X1 and Audi’s Q3 priced between Rs 21-25 lakh. Mercedes hopes to follow this up with the launch of the GLK SUV in 2015.

http://www.zigwheels.com/news-featu...-looking-to-economize-india-operations/14011/
 
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German auto major Daimler today said it will start assembly of its luxury sports utility vehicles M and GL-Class from Mercedes-Benz's portfolio in India by next year.
This would also reduce the prices of these cars in India + give some more profit to Merc also. If the FTA with EU is done, one can expect atleast 30-35L price cut on several Mercs & Beemers. [glasses]
 
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This would also reduce the prices of these cars in India + give some more profit to Merc also. If the FTA with EU is done, one can expect atleast 30-35L price cut on several Mercs & Beemers. [glasses]
That's right, it surely is a welcome move from Mercedes who is under lot of pressure thanks to Audi , BMW
 
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That's right, it surely is a welcome move from Mercedes who is under lot of pressure thanks to Audi , BMW
Yes, but BMW is selling just because of X1...remove X1 & sales fig dip.
Audi on other hand has Q series which is doing well in UV segment.
Merc has fantastic SUVs but the notion is Merc has to be luxury car, Audi an SUV & Beemer a drivers car. Hope the market matures in coming time.

BTW, the new E Class is better driver's car than 5 series.
 
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Mercedes Benz StarDrive to be Held in Delhi on 1st & 2nd September

Mercedes Benz India is fast becoming aggressive with the marketing of its cars and we won’t be too surprised if it re-gains the crown of being India’s largest selling luxury car maker. The Mercedes Benz StarDrive will be now held in Delhi on 1st & 2nd of next month. The Slalom Course at Delhi, which should teach a few off road tricks to the participants, will be the first event of the Phase II of this series and is open to all the fans of German car maker’s M Class luxury SUV. The winner of Mercedes Benz StarDrive will get to meet famous bollywood star Farhan Akhtar.

Log on to Mercedes-Benz STARDRIVE to sign up for the event.

Schdedule-

STARDRIVE PHASE II : SEPTEMBER - OCTOBER

DELHI – 1-2nd SEPTEMBER – BUDDH INTERNATIONAL CIRCUIT
CHANDIGARH – 7-8th SEPTEMBER
MUMBAI – 22-23rd SEPTEMBER
 
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