Mercedes "cautiously optimistic" on growth in election year

Luxury car maker Mercedes Benz on Wednesday said that it is "cautiously optimistic" about growth prospects in 2019 since it is an election year.

"This is an election year. So, we are cautiously optimistic about growth in the first half as people are deferring purchases. We expect that there will growth in the second half," MD and CEO of Mercedes Benz India Martin Schwenk said.

Schwenk said that the company sold 15,538 units in 2018 and expects to hold on to its leadership position in the luxury car segment in India with a market share of close to 40 per cent.

As of now, the company has 24 models which are being sold in India, of which nine are produced at its Pune plant.

The company has invested Rs 2,200 crore in the Pune facility so far.

Schwenk said India is a big market for Mercedes Benz and the focus would be on Tier II and III cities of the country.

Schwenk said the company would launch more than 10 models in 2019.

He said the sedan and SUV segments would see some 'movements' which would help the company in maintaining market leadership.

According to Schwenk, the size of the luxury car segment is around 40,000 units per annum.

He added that the market for Mercedes Benz in West Bengal and the east is around 50 per cent, which is almost at par nationally.

The company, which completed 25 years of operations in India, has dealer outlets of around 95 across 47 cities.