Mercedes Expects Double-Digit Growth In India In 2023 Despite Weak Rupee
2 mins read
Published on January 9, 2023
Mercedes Benz expects double-digit sales growth in India this year, despite concerns that a weaker rupee could increase car prices, the head of its local unit said in an interview. The German luxury carmaker's sales in India rose 41% last year to 15,822 cars, its highest ever in the country, and it has an order backlog of around 6,000 vehicles, Santosh Iyer, managing director for Mercedes-Benz India, told Reuters. One risk to the growth of India's luxury car market is a weakening Indian currency, which could force Mercedes to increase domestic prices as imported components get pricier, he said.
The rupee fell 10% against the dollar in 2022, its steepest drop since 2013, making it the one of the worst performing Asian currencies. "One of the biggest risks we see for us is the exchange rate. With the rupee weakening a bit more, that will lead us to more price increases. So that's some headwind we see when it comes to the growth potential," Iyer said. "But we are starting the year with a very healthy order bank and that gives us the confidence of a double-digit growth even for 2023," said Iyer.
Mercedes plans to launch 10 new cars in India in 2023, most costing more than Rs. 1.0 crore ($120,000), the top-end segment that grew 69% in 2022. The new launches will include gasoline cars, electric vehicles (EVs) and plug-in hybrids. The company launched three EVs in India in 2022 including a locally assembled, electric model of its flagship S-Class sedan. EVs have seen strong demand, with Indian customers waiting four to six months after booking their cars. Iyer wants to reduce this to two to three months before launching more EVs.
India's EV market is gaining momentum - Renault is considering building a mass-market EV locally, Reuters reported on Friday, in a renewed push into a market where sales of such cars expected to grow quickly from a small base. Domestic carmaker Tata Motors and foreign players like Stellantis and Hyundai Motor have also lined up EV launches. Mercedes has seen an easing of a global semiconductor shortage, but still faces some disruption due to a shortage of parts and delayed shipments caused mainly by geopolitical issues, energy crisis in Europe and pandemic-related lockdowns in different parts of the world, Iyer said. He predicted it will take 12 to 18 months for the situation to normalise.
Last Updated on January 9, 2023
Great Deals on Used CarsView All Used Cars
- 9,800 km
- 53,232 km
- 29,000 km
- 46,630 km
- 32,400 km
- 73,810 km
- 85,500 km
- 72,000 km
- 36,800 km
- 65,400 km
-19031 second ago
JLR India to conduct annual holiday service camp from December 4th-9th at all authorised retailers, offering vehicle check-ups, exclusive offers and more
11 hours ago
A strong push during the festive season helped Ola Electric achieve its highest-ever monthly sales, retaining its number-one position in the market.
Gauhar Khan and her husband, Zaid Darbar, were pictured together at the dealership in Mumbai while taking delivery of their new Mercedes.
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year
13 hours ago
The bikemaker’s cumulative motorcycle sales for the year 2023 stood at 621,672 units, reflecting a 13 per cent increase.
13 hours ago
In the previous month, the automaker sold a total of 11,891 units, marking a growth of 24 per cent as compared to the same month last year.
14 hours ago
At present, India’s largest carmaker holds just a little over 2.06 lakh open bookings, nearly a third of which are for the Ertiga.
15 hours ago
New variant of the Chetak scooter gets some changes as compared to the Premium variant currently on sale.
16 hours ago
The cumulative sales for the Calendar Year 2023 reached 2,10,497 units - a 40 per cent growth over 2022
1 day ago
2 days ago
The Mercedes-Benz EQS is made in limited numbers at the Alabama plant in the US and production will move to Germany by 2026 to make way for the new-generation EQC.
4 days ago
Mercedes-Benz has partnered with E.ON for the development and operation of the Charging Network in Europe.
14 days ago
A power upgrade and more features push the price up but make one of Mercedes' best-sellers more interesting
16 days ago
Automated parking function now offered in the E-Class sedan and estate, EQE SUV, and EQS SUV.