Merc in search of a sporty, young image

After 15 years of unrivalled presence, Mercedes Benz is seeing competition heat up from compatriots BMW and Audi in the luxury car market in India.

Despite a strong growth in sales, the company lost the top slot to much younger rival BMW in the last two years. So when Peter Honegg assumed charge as managing director and chief executive officer, Mercedes Benz India, in January this year, he was given a specific mandate. Apart from revving up sales, Honegg is to revitalize and project Mercedes as sporty young brand for the youth.

Honegg, who has headed operations for Mercedes Benz in China and Malaysia and is famously known as the company’s ‘Asia Advisor’, is upbeat. “We are the oldest as well as the youngest automobile brand in the world. Mercedes was established 125 years ago and we have constantly re-invented ourselves. We own 80 per cent of all auto patents worldwide, we have technological expertise. What we have to do now is to communicate that to our buyers.”

To this effect, the company has firmed up plans to set up its first brand centre in the capital by the end of this year. The brand centre would showcase the 40-odd cars Mercedes Benz has in its portfolio globally. Plans are afoot to establish a second centre in Mumbai.

To give the brand a sporty perception in India, Honegg further plans to leverage the association Mercedes has with the Formula One (F1). “We are the only other company to be in F1, apart from Ferrari. But few in India know of our association with motorsports”, says Honegg.

To draw in enthusiasts, MBIL is looking at selling F1 tickets through the company’s dealerships as India gets ready to host the world’s most adrenaline thumping motorsport event for the first time in Delhi in October.

Some of these sales outlets will display the E Class with AMG optic which has a sportier appeal for young sporting enthusiasts.

Over medium and long term, MBIL is planning to use the online medium in a big way.

Work is also on to tweak the product portfolio the company has in India and various models have been launched in recent months. The Maybach 57S & 62, Mercedes-Benz G 55 AMG, Mercedes-Benz SL 350 and Mercedes-Benz GL-Class 500 have all been introduced to conform to and build on the new perception of the brand Mercedes wants to project in India.

Suhas Kadlaskar, director (corporate affairs and human resources), MBIL, adds, “Over the last two to three years at the entry-level the average age of the Mercedes customer has come down to 35 years from the earlier 50 years.

The age profile has altered largely because of the product stable we have on offer and the technology which shapes our brand.”