DaimlerChrysler eyes surging demand from southern cities

Unveiling the latest edition of its S-Class and M-Class vehicles for the southern market at the Mercedes-Benz Brand Showcase here on Saturday, DaimlerChrysler India said South was an important market for the company.

The Brand Showcase featured the complete range of Mercedes-Benz cars in India - the debutante S-Class, the E-Class and the C-Class models. It also featured the completely-built imported range of models like the SLK-Class, CLS-Class and the M-Class. The event also featured the model Maybach, which is priced at Rs 5.25 crore.

Addressing a press conference later, Wilfried Aulbur, managing director and chief executive officer, DaimlerChrysler India, said southern region accounted for 25 per cent of the company's sales.

"We could make good growth in sales in major Southern cities. There is also an increase in demand from non-metro cities of the region," he said.

"Southern region is very important for us in India. It is even more exciting to note that our customers in this region are mostly youngsters. We are growing not just in Bangalore, Chennai and Hyderabad, but also in many Tier II cities like Kochi, Coimbatore, and Calicut," he added.

"Customer base of Mercedes-Benz in India is also improving in terms of the average age of owners. Young entrepreneurs, IT professionals and successful businessmen are attracted to the Mercedez-Benz brand," he added.

On expansion of its dealerships, he said that the company was following the hub-and-spoke model to extend its reach. It was looking at expanding its reach by allowing its existing dealers to open showrooms in more cities.

Suhas Kadlaskar, director (corporate affairs and finance), said that the company would organise more road shows in other cities in the region to move closer to customers.

Last year, the company sold about 180 vehicles in Chennai and Coimbatore, he said.

In 2005, the company sold 2,019 cars in India, registering a compounded annual growth rate of 17 per cent since 1999. The company said it was confident of achieving the same kind of growth this year too.

The northern region accounted for 35 per cent of its sales and the west for 30 per cent. Till February 2006, it sold 137 units.

With presence in 24 cities, the company has so far sold about 15,000 vehicles in India.

Aulbur also said the company was looking at the bus segment. But he added that no decision had been taken in this regard.