Mercedes Benz India has recently experienced downfall in its sales figures, especially in the last month, due to change in its dealerships. The company is hopeful for better sales performance in the next fiscal with new strategies and product launches. Mercedes-Benz India foresees improving market conditions in future months. "The luxury car market was most affected in the first five months, but from July onwards we have again started getting good responses," Debashish Mitra, director (sales and marketing) of Mercedes-Benz India, told reporters.

It recently witnessed drop in sales to 200 units against 300 units sold year ago in Punjab and Chandirgarh mainly due to non-availability of cars. These two are key markets for the company and account for nearly 10 percent of the overall sales in the country. Mercedes Benz ended its 12 year old relationship with Tai Pan Traders who were in charge for Punjab and Chandigarh and appointed Joshi Autozone for these two markets. It also replaced dealers in Gujarat, Mumbai and Pune.

Mitra said, "as part of our corporate policy, we review the performance of all our dealers and based on it, we have parted ways with Tai Pan Traders." Mercedes is hopeful of receiving good response from Punjab and Delhi still remains the biggest market for the luxury car maker. Its new SUV M-class was also receiving good response in the market.