This is Mercedes-Benz’s attempt to tap the second hand luxury car segment which is growing rapidly in India.
Yesterday, Mercedes-Benz announced that it will launch a separate brand in India which will deal only in the pre-owned luxury cars. Taking the route Mahindra and Maruti-Suzuki had taken long ago, Mercedes will try to tap the niche segment of pre-owned luxury vehicles with this approach. This also resonated well with the increasing demand Indian market has shown towards such cars. Mercedes says it sees a “phenomenal” growth in this segment, and called it the “next growth story” in Indian luxury car business.
Commenting on this decision, Mr. Eberhard Kern, MD & CEO, Mercedes-Benz India said, “The growth rate in pre-owned car (in India) is phenomenal. We (Mercedes-Benz) have seen 45 per cent growth in pre-owned car business this year. In two weeks time, Mercedes-Benz India is going to launch a new pre-owned car brand. We will take the next big step in pre-owned car business.”
He also said that the trading ratio of such cars in the Indian market was as low as 10-20% which is quite low as compared to the European markets. But he also added that the scene in India was “growing very fast.”
Mercedes will be doing this new business through its existing dealers and will offer very competitive prices to customers. Mercedes’s approach to have the densest network in India for any luxury car manufacturer will also boost its sales perspectives. This step is also significant as Mercedes is doing 55% of its business from tier-II and tier-III cities in the Indian market. The German car manufacturer also said that it will sell 10,000 cars this year making it the first time ever this number has been realised and achieved.
With 13 new dealerships inaugurated this year, Mercedes has reached a mark of having 68 dealerships in 37 cities in India at present.
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