Mercedes-Benz India expects top-end models to drive in revenues

Sales of TEVs at the local arm of the German luxury-car maker had more than doubled in the January-March quarter of this calendar year, outpacing the 17% growth in its overall volume.

Mercedes-Benz India managing director Santosh Iyer told ET that the company sold 1,700 vehicles priced at over ₹1 crore in the first five months of 2023, adding ₹3,000 crore to its revenue in this period. “Last year we gave a forecast of double-digit growth and going by the first-quarter performance, we are confident of maintaining the growth trajectory and have yet another year of record sales,” Iyer said.

Driven by the TEVs, which are likely to contribute more than 28-30% to the revenue, it could also be a record year for revenue, he stated, speaking on the sidelines of the launch of the AMG SL 55 4MATIC+ roadster version, priced upwards of ₹2.35 crore.

The company reported revenue of ₹6,188.5 crore in fiscal 2022, PTI had reported citing data from Tofler. This was the company’s highest revenue since FY19 when it had clocked ₹6,314.3 crore with a profit after tax of ₹311.4 crore.

The average selling price (ASP) of cars sold by the company has gone up over the last couple of years with customers’ preferring higher trims and top-end vehicles, driven by growing purchasing power, he stated. The ASP has also been boosted by the price hikes taken by the company to offset input and freight costs. This year alone, it increased prices twice and may go for further hikes if there is a need.To tap into the potential at the higher end of the luxury car market, Mercedes Benz has been launching multiple top-end luxury vehicles like the GLS, S Class, S-Class Maybach, GLS Maybach, the AMGs and the EQS in recent years. In 2023, more than half of the company’s 10 planned launches will be positioned in the TEV segment. For a market that has traditionally been known for its value-conscious buyers, sales of high-end vehicles with premium features have been on an upswing across the automobile segment.According to 2023 M3M Hurun Global Rich List, India is ranked third in terms of the number of billionaires. The country has 105 self-made billionaires, ranking third in this category.