Aiming for double digit volume growth in 2024: Mercedes-Benz India MD & CEO

The German carmaker, which leads the luxury car market in the country, recorded a 10 per cent year-on-year growth to 17,408 units in 2023

Mercedes-Benz India is aiming to post double-digit growth in sales volume during 2024 as it plans to launch over 12 car models during the year, its managing director and chief executive officer Santosh Iyer (pictured) said on Monday.
 

The German carmaker, which leads the luxury car market in the country, recorded 10 per cent year-on-year (Y-o-Y) growth to 17,408 units in 2023.

“For 2023, we always said that the growth would be in double digits.  We have closed 2023 at 17,408 units, which is a big number,” Iyer told Business Standard.
 

In 2022, the company had recorded a 41 per cent Y-o-Y growth to 15,822 units. 
 

“For 2024, we are still aiming for double-digit growth again. This is enabled by 12-plus product launches that we will do in 2024. More than 50 per cent of the product launches will be in the top-end segment. Three new EVs (among the 12 plus cars) will also be launched this year, he added.
 

“Apart from the (10 per cent) growth in 2023, you should also look at the structure. Over the last four years, our average selling prices have also gone up significantly. This is due to the rising desirability and our focus on the top-end segment. In 2023, about 25 per cent of the company's sales were in the top-end segment,” Iyer added.

The company categorises the cars with selling prices above Rs 1.5 crore in the top-end segment. In 2022 and 2021, about 12 per cent and 22 per cent of the company's total car sales were in this segment.

On Monday, Mercedes-Benz India also launched the new GLS to strengthen its SUV portfolio in the country. “We also saw three times growth in our electric vehicle (EV) sales between 2022 and 2023. Our EV penetration has gone up to four per cent. It was just 1-1.5 per cent in 2022,” Iyer said.

He said EV business growth is a marathon and not a sprint. “One should be realistic. It will go slowly in terms of adoption,” he stated.

“For 2024, we are still aiming for double-digit growth again. This is enabled by 12-plus product launches that we will do in 2024. More than 50 per cent of the product launches will be in the top-end segment. Three new EVs (among the 12 plus cars) will also be launched this year,” he said.

Iyer said the company is going to invest Rs 200 crore in product startups and for digitisation at its plant in Pune. “This takes our investment in India to about Rs 3,000 crore,” he noted.

The company is also planning to increase its customer touch points from 125 in 53 cities to 145 in 63 cities in 2024.

“We feel that a Mercedes-Benz car should be serviced within two hours from wherever the customer resides. We are going to open 20 new workshops in 10 new cities in the country. These are mainly mini-metros like Amritsar, Jammu, Kanpur, Kottayam and Valsad,” Iyer said.