Luxury car maker Mercedes-Benz India is sharpening its focus on Tier-2 markets to sustain its growth momentum, according to a top official.
“Tier-2 markets have the potential to emerge as key markets and they are the engines of future growth for this country,” said Roland Folger, MD and CEO, Mercedes-Benz India.
‘New customer base’
“The customers are there, the aspiration is there and the awareness for luxury goods is quite prevalent. Hence, it’s natural for a luxury marque like Mercedes-Benz to explore new customer base in Tier-2 markets.” On shifting focus to Tier-2 markets, Mr. Folger said, “It’s strategic and has been in the works for [the] last many years.”
Currently, Mercedes-Benz India has 90 outlets in 45 cities. With the ‘Go to Customer’ strategy, the firm continues its strategic expansion in Tier-2 markets to maximise accessibility, he said.
According to him, Mercedes-Benz India draws approximately 45% of its annual sales from the key metros of Delhi and Mumbai, while the south market contributes to about 31%. The contribution of New Delhi and Mumbai has been coming down over the past many years.
During the first nine months of 2017, Mercedes Benz achieved 20% per cent growth in India compared with the year-ago period. It sold about 12,000 cars between January-September 2017.
Mr. Folger said the firm not only focused on sales but also on offering world-class Mercedes-Benz ownership experience.
“So, we have not only aggressively opened 3S (sales, service and spare parts) dealerships in smaller cities like Mysuru, Guwahati, Thrissur but also have dedicated workshops in key emerging markets like Salem, Hoodi near Bengaluru and even southern Goa. And, more are on the way,” he said.
“We wanted to break the myth that service is a costly affair. We recently rolled out ‘My Mercedes-My Service’ programme wherein we offer the lowest cost of ownership for a Mercedes-Benz,” Mr. Folger added.
