“The base is getting broader and gradually going beyond our traditional customers,” Schwenk told Reuters in a recent interview in the western industrial city of Pune, where Mercedes’ headquarters and manufacturing plant are located. in India.
“In the future we will see higher growth rates in the luxury segment than in the mass market,” he said, adding that the median age of buyers has also fallen below 40, from more than 45 previously.
However, the biggest obstacle to growth for automakers is a shortage of semiconductors and logistical problems exacerbated by the Russian invasion of Ukraine. In the case of Mercedes India, this has led to an order backlog of 4,000 units, Schwenk said.
The start-up frenzy and the Indian stock market boom are creating a new breed of wealthy who splurge on luxury brands like Rolex, Louis Vuitton and Gucci, according to the Hurun India Wealth Report 2021.
The number of Indian households with a net worth of at least $1 million grew 11% in 2021 to 458,000, and is expected to rise 30% in the next five years, according to the report.
India is very much a market for small, low-cost cars with luxury models accounting for just over 1% of total annual sales, which are about 3 million.
Mercedes is the best-selling luxury brand, with a market share of more than 40%, according to car market data provider JATO Dynamics, and competes with Audi, BMW and Tata Motors’ Jaguar Land Rover.
Its sales in India increased more than 40%, to 11,242 units in 2021, after a low of 7,893 during the year 2020, affected by the pandemic.
However, it saw 80% growth in high-end models such as the GLS, S-Class and GLS Maybach, all priced above Rs 10 million ($131,337).
Source: Ambito
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