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Mercedes Benz India revises growth target for 2016 due to demonetization

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Mercedes Benz India supports the Modi Government’s demonetization strategy in view of its long term benefits. But, at the same time it has affected the company’s sales target in a huge way. The company had stated at the start of 2016 that they aim to achieve a double digit growth rate, have now stated that the same would no longer be possible because of demonetization.

The luxury automaker has revised sales growth for this year from an original double digit growth to flat sales primarily due to impact of demonetization.

Mr Roland Folger, MD & CEO, Mercedes Benz India posing with the new CLA facelift.

Despite the fact that sales were impacted due to the diesel ban in Delhi and NCR earlier this year, the company was still targeting double digit growth. However, the recent demonetization policy announced by the Modi Government on 8th November, has caused the company to rethink its targets. Despite announcing double digit growth, a dip in sales for the fourth quarter, and an overall flat year for the entire luxury car segment in the country is what is predicted.

Speaking at the opening of Mercedes Benz India’s 88th outlet in Guwahati, Mercedes Benz India CEO Roland Folger has stated that footfalls at the Mercedes showrooms have fallen by as much as 50-60% in November following the banning of high denomination notes by the Union government.

Roland Folger, CEO and MD, Mercedes Benz India.
Roland Folger, CEO and MD, Mercedes Benz India.

Folger stated that the company hopes sales will pick up over the upcoming Christmas season which would make up for lost sales while Mercedes Benz also plans launch of one more new model before the year end. Overall, Mercedes Benz India is hopeful that these new policies laid out by the Modi government (GST, Demonetization), will be helpful in the long run. When asked what will be your growth targets for 2017, Mr Folger replied Mercedes Benz always aims for a double digit growth target.

via Times of India