Mercedes-Benz India has said that its brand rejuvenation and the stronger resale value its cars enjoyed in the Indian market provided an edge over its German rivals and helped its efforts to regain the top position.
While numerous launches and dealership expansion aided the strong come back of Mercedes in India, the company claimed that its brand rejig, service quality and better resale value also supported its volume growth.
“We have found that Mercedes is one of the top six brands among the people aged 25 years and below. There was a strong indicator that Mercedes brand has rejuvenated itself to appeal to young buyers. Nowadays, customers want a younger brand and they like the brand that is changing to meet the aspirations of the consumers. We have done that in India,” Roland S Folger, Managing Director & CEO, Mercedes-Benz India told The Hindu.
Dismissing the claims made by its competition that Mercedes’ volumes were driven mostly by low end models that bring lower margins, Roland S.Folger, Managing Director & CEO, Mercedes-Benz India said: “we are selling our vehicles at a premium. Practically, we are the most expensive product in the market. Despite this fact, the company’s sales are growing strongly.
“Normally, if you are an expensive brand, you can’t sell as much as others. We believe that offering products backed by good service and higher resale value, we can sell more than anybody out there at a higher price. People will get more for Mercedes than any other product when they sell it after five years. So, part of that premium price is for good service, resale value and a host of other values associated with the brand,” he added.
Mr.Folger also stated that Mercedes Benz was recording robust numbers in high end segment too. “Our SUV numbers have grown by 70 per cent during the nine month period of 2015 when compared with a year-ago period. These SUVs fetch high margins,” he added.
Mercedes is set to end the present calendar year with highest ever annual sales that are expected to be significantly higher when compared with the numbers of Audi and BMW. Mercedes regained its Number One position, which it lost four years ago, in Q1 of 2015.
