Mercedes-Benz India upbeat about customer sentiment revival this festive period
Mercedes-Benz India reports 5,007 units sold in the January- September 2020 period. September 2020 monthly sales reached pre-lockdown levels for the first time, and points to strong buyer sentiment this festive season, a period that is traditionally a time of sales increase.
September 2020 sales is led by new SUVs, accounting for 48 percent penetration, followed by sedans and AMG & Dream Cars, GLC, GLE and GLS SUV, C-Class and E-Class sedans are volume drivers. E-Class sedan continues as the company’s single highest selling model in 2020, followed by C-Class sedan. GLC is the highest selling SUV. Mercedes-Benz A-Class Limousine is scheduled for launch in Q4 2020.
Mercedes India sales through Jan – Sep 2020
Through H1 2020, sales was reported at 2,948 units at 55.06 percent decline. Q1 sales was reported at 2,386 units, down 38.58 percent from 3,885 units in Q1 2019. Q2 2020 sales fell to 562 units, down 78.99 percent from 2,676 units in Q2 2019.
Q3 2020 sales accounts for 2,059 units, down 38.61 percent from 3,354 units in Q3 2019. Sales deficit has been curtailed on account of low base sales in Q3 2019, also a quarter when the company reported sales decline. Sales fell by 4,908 units for 2020 thus far at 5,007 units, down 49.50 percent from 9,915 units in Jan – Sep 2020.
As it stands, sales deficit of 50 percent through Jan – Sep 2020 is not one that can be recovered through Q4 2020. Though Q3 sales grew over Q2, for now, Q1 sales remains the strongest for the year. Wholesale monthly sales numbers are unavailable, FADA has reported retail sales for Mercedes Benz India at 565 units for September 2020, down 26.81 percent from 772 units in September 2019. Mercedes continues to be the No 1 luxury brand in India.
Martin Schwenk, Managing Director & CEO, Mercedes-Benz India said, “We are glad to witness a strong comeback in the course of the last quarter, with a significant increase from month to month within the third quarter.”
Online sales growth
Growth is attributed to the brand’s product introductions, financial packages, and gradual uptick in business and economic activity. Upcoming festive season should boost sales momentum. Mercedes Benz India holds an optimistic view for Q4 2020 sales, and customer feedback is positive.
Online sales focus is strengthened through an end to end approach, and close collab with retail partners. In July-September 2020 period, Mercedes-Benz India online car booking contributed up to 20 percent of sales volume. The end result includes convenient home delivery option. Mercedes-Benz India looks forward to a considerable portion of total sales to be completely online by 2025. Pre-owned Mercedes-Benz cars too can be purchased online.
A fortnight ago, the company has increased its vehicle price range. The October 2020 price hike is attributed to weakening of Indian currency against euro in 2020, and increase in input costs, creating pressure on the bottom line. Price revision extends up to 2 percent, varying across the vehicle line-up.