Santosh Iyer, MD and CEO of Mercedes-Benz India revealed at the Moneycontrol and CNBC-TV18’s AI Alliance event in Pune that more women are purchasing Mercedes-Benz cars. He noted a substantial rise, with women buyers now constituting 15 percent of their total base, up from 6-7 percent previously.
Youth’s preference for luxury
Notably, the average age of Mercedes-Benz buyers in India has dropped to 38 years from 44, indicating a growing preference among younger demographics for luxury vehicles. Youngsters, according to Iyer, are veering away from traditional investments like real estate, opting instead to indulge in luxury experiences.
However, while luxury car penetration in India stands at approximately 1 percent overall, regional disparities exist. In metropolitan cities like Mumbai and Delhi, penetration rates are higher, around 2.5 percent. However, Tier 2 and 3 regions lag behind, with penetration as low as 0.4 percent.
Iyer highlighted shifting perceptions in these regions, with a growing desire for luxury vehicles even if it was previously deemed unnecessary.
Expanding offerings and partnerships
In response to burgeoning demand, Mercedes-Benz plans to launch 12 new cars this year, including three additional electric vehicles (EVs), bringing their total EV portfolio to six. This move reflects the company's commitment to sustainability and innovation.
Mercedes-Benz is collaborating with tech giants like NVIDIA and Google to enhance the personalisation of its vehicles through software integration. Iyer emphasized that Mercedes is evolving beyond mere transportation, becoming an immersive and technologically advanced experience for users.
Efficient supply chain management
The company is leveraging predictive tools to optimise its supply chain, ensuring smoother logistics from suppliers to end consumers. This proactive approach helps estimate waiting times accurately, crucial in managing the high demand for Mercedes-Benz vehicles.
Iyer highlighted the exceptional performance of Mercedes-Benz in India, with 18,000 cars sold last year and revenue surpassing Rs 10,000 crore. He underscored the significant role of the company's workforce in Pune, comprising around 2,000 individuals contributing to both research and development (R&D) and IT functions.
According to Iyer, every Mercedes-Benz vehicle worldwide carries a piece of India, showcasing the country's integral role in the brand's global success.
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