Mercedes-Benz India, the domestic division of German luxury car maker, seems to have pinned high hopes from the domestic auto industry as it is planning to invest a sum of Rs. 250 crore, in order to double the production potential before the end of 2013. On the same lines, the Director (Sales and Network Development) at Mercedes-Benz India, Boris Fitz was quoted as saying, “According to our estimates, the luxury car market in India will be four percent of the total passenger car segment by 2020.”
He further said that the passenger car market would carry a volume of almost eight million units by the end of 2020. While introducing the A-Class hatchback in Kolkata, Fitz said that currently, the luxury car segment of the Indian auto market is just two per cent of the entire passenger car segment in the country. According to him, Mercedes-Benz is playing bullish for the Indian auto market as it is looking ahead to two-fold its production potential to 20000 units per year from the existing 10000 units.
In 2012, the auto maker delivered 7138 units to the Indian buyers and following this, Fitz said that the German marque is aiming to double these units by the end of 2013. He further added that while the growth in passenger car segment has been southwards, the graph of luxury car segment has been on the opposite direction. This statement has been based on the trend of luxury cars buyers who are being insulated from the country’s economic cycles. In order to emerge as a volume puller in the market, Mercedes-Benz is also planning to introduce a number of new models before the end of 2013.
Industry experts are of a view that with these aggressive plans, Mercedes-Benz will surely turn the tides it its favour. Interestingly, the new models recently introduced by the ‘Three Pointed Star’, like B-Class and A-Class hatchbacks, targets the young turf of the Indian market, which are sure to drive its sales by miles.