Mercedes India aims double-digit growth during festive season sales
What's the story
Mercedes-Benz India is expecting a record-breaking festive season, with double-digit growth. The optimism comes from strong demand and attractive price cuts, as well as a buoyant luxury car market. Santosh Iyer, the Managing Director and CEO of Mercedes-Benz India, made the statement at Network18's Reforms Reloaded event in New Delhi. He said that average price cuts are between 5% and 8%.
Impact on buyers
Iyer's comments on GST rate changes
Iyer further explained that a 6% price cut can mean savings of ₹1.5 lakh to ₹20 lakh for buyers. He said, "We operate at a price point of ₹94-95 lakh, with a 10% headroom to price further." The comments come as the new GST rates come into effect today, reducing prices across a wide range of consumer products.
Sales forecast
Record per-day car sales expected during festive season
Iyer also predicted that the next eight days could be a new high for the Indian auto industry. He said, "We expect the highest ever per-day car sales in India's history during this period," highlighting strong festive momentum starting October 2. This optimism is backed by Mercedes-Benz's impressive sales performance over the past six years, having sold one lakh cars in India. This is a sharp acceleration compared to the one lakh units sold over the previous 30 years.
Market strategy
Iyer's concerns about potential slowdown impact
Despite the optimism, Iyer warned of early signs of a slowdown. He said, "A full-year impact of even 2-3% more would matter a lot." The German carmaker is taking a stance of "strategic patience" in India, while staying flexible to adjust prices according to forex fluctuations. The CEO also spoke about long-term opportunities from potential trade agreements such as the proposed EU-India Free Trade Agreement (FTA), which could make luxury cars more accessible.