Mercedes-Benz expects considerable growth in India this year

18. February 2021

German luxury vehicle manufacturer Mercedes-Benz expects considerable growth in India this year, underpinned by the launch of 15 new models and rising demand in the fourth quarter of 2020. However, the company will not be able to match its former 2018 peaks until 2022, a management official said. This slow recovery comes as a result of supply issues from automotive suppliers in Europe. Mercedes-Benz India CEO Martin Schwenk said in an interview that a return to normalcy is taking place with increasing momentum in the fourth quarter as well as a decline in Covid 19 cases. He also said he sees strong demand across the company’s product range.

 

In India’s festive season during the fall months of 2020, Mercedes-Benz saw an uptick in sales, which was also supported by model debuts. Schwenk further said, “This trend will continue in 2021. We also have 15 new models in the pipeline for the Indian market. With continuation of stable demand, I see a good opportunity for the company to recover and sustain growth this year.” Last year, sales were down 43 percent to 7,893 vehicles, compared to 13,786 vehicles sold in 2019.

Asked about the current year, Schwenk said they are currently having problems starting production. They need experts and parts and machinery from Europe, but this is proving difficult due to restrictions on travel and logistics. Since demand has developed better than originally expected, there are delivery problems for the best-selling GLE and GLS. There are waiting lists and a waiting period of between one and three months for these models. Schwenk expects the situation to ease in the first quarter of 2021. Due to the positive development of the Indian economy and increasing confidence among consumers and especially companies, which make up a large part of the customers, Schwenk sees sustainable growth for Mercedes-Benz in India.

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