Mercedes-Benz Expects Used Cars To Make Up 20% Of India Sales In 2023
By Carandbike Team
3 mins read
Published on June 27, 2023
- Mercedes-Benz expects 20 per cent of sales from pre-owned cars despite sourcing challenges
- Mercedes-Benz India observes strong demand, reducing holding period to 10 days for pre-owned cars
- Major metros drive pre-owned business growth, while first-time luxury car buyers opt for certified Mercedes-Benz
German luxury automaker Mercedes-Benz is expecting approximately 20 per cent of its India sales this year to be derived from pre-owned car sales, despite encountering challenges in sourcing used vehicles. Mercedes-Benz India sold over 3,000 pre-owned cars last year and has observed strong demand for such vehicles, resulting in a reduced holding period of around 10 days compared to the previous 30 to 45 days.
The company sells its pre-owned cars through the "Mercedes-Benz Certified" channel
“Still 18 to 20 per cent of our total car sales will come from used cars. So last year, if we did 16,000-odd cars, I will say 3,000 plus cars were used cars, about 20 per cent. Similar ratios will continue, I would say at 20-odd per cent,” Mercedes-Benz India Managing Director & CEO Santosh Iyer told PTI.
The company sells its pre-owned cars through the "Mercedes-Benz Certified" channel, which is present at all dealerships and actively involved in selling and trading cars. This segment has witnessed steady growth, with a 20 per cent increase in Q1 2023, driven by rising aspirations and enhanced supplies of pre-owned cars, as mentioned by Iyer.
However, Iyer pointed out that expanding the contribution of pre-owned cars to total sales beyond 20 per cent is highly challenging due to vehicle availability. He explained, "Pre-owned car sales are influenced by the new car market. The biggest challenge is the availability of a pre-owned car today when the new car has a waiting period of three to six months." Customers prefer to retain their Mercedes-Benz rather than switch to a mass-market car, leading to a delay in the sale.
The long-wheelbase E-Class stands as the top-selling pre-owned car for Mercedes-Benz India
Furthermore, Iyer highlighted that customers often find buyers within their own networks and conduct transactions directly. “So many of the transactions actually don’t happen via us as they happen directly between customers. So, our dealers and our partners find it a big challenge to source a car, but once you source a car, the average time a car is with us is now hardly a week-10 days, it used to be 30 to 45 days of holding period for a used car because these cars are flying at good pricing.”
Discussing the growth of the company's pre-owned cars, Iyer stated, "There is a trend of first-time luxury car buyers opting for a certified Mercedes-Benz buoyed by a strong brand trust, completed with transparency and robust processes."
In terms of geography, Iyer mentioned, "Major metros remain our key growth drivers contributing close to 60 per cent of our pre-owned business. However, it is encouraging to see aspiring customers in smaller metros showing high interest in luxury cars, opening new growth opportunities for our certified business."
The long-wheelbase E-Class stands as the top-selling pre-owned car for Mercedes-Benz India. When asked about the overall sales growth forecast for 2023, Iyer stated, "Our outlook remains unchanged from the beginning of the year. We still anticipate double-digit growth for the rest of the year."
In addition, Iyer emphasized that 2022 witnessed record sales and double-digit growth, and the company aims to achieve another record year in its history. During the first quarter of 2023, Mercedes-Benz India achieved sales of 4,697 units, representing a 17 per cent growth compared to the same period in the previous year. The company posted record sales of 15,822 units in 2022.
Last Updated on June 27, 2023
Great Deals on Used CarsView All Used Cars
- 45,026 km
- 27,477 km
- 9,800 km
- 46,630 km
- 17,459 km
- 32,400 km
- 72,000 km
- 73,810 km
- 72,000 km
- 36,800 km
Popular Mercedes-Benz Models
-17185 second ago
The facelifted XUV300 gets a redesigned front fascia with new light clusters, enclosed grille and redesigned bumper
-13802 second ago
The recall affects 45,230 units of the Wrangler 4xe sold in global markets
-12468 second ago
The Jesko completed the 7.3-kilometre lap in 2 minutes and 56.97 seconds.
-11293 second ago
Toyota Gazoo Racing reshapes its 2024 WEC lineup, introducing Nyck de Vries to replace José María López in the #7 Toyota GR010 Hybrid.
-9743 second ago
His remarkable 86 per cent win rate in 2023, where he claimed victory in an astonishing 19 out of 22 races, surpassed Alberto Ascari's legendary benchmark set in 1952
-9737 second ago
The company will be offering electric vehicle chargers through direct sales channels.
-9460 second ago
Lamborghini has issued a recall for 77 units of the Huracan EVO, STO, and Tecnica.
-9325 second ago
This collaboration's initial phase involved delivering 20 BYD e6 vehicles, flagged off in Bengaluru.
-4531 second ago
The Kia Seltos will now be more affordable starting from the HTX variants onwards but these variants also miss out on a crucial feature.
-1916 second ago
The new and improved layout means drivers will have to juggle more technical elements, faster speeds and better energy management.
10 days ago
The new Mercedes-AMG C 43 is bolder, more powerful and promises to offer better performance than its predecessor, despite having a smaller engine. So, can it live up to those claims? Let’s find out!
12 days ago
A power upgrade and more features push the price up but make one of Mercedes' best-sellers more interesting
15 days ago
Mercedes reached a milestone of 10 million vehicles sold globally equipped with Active Brake Assist pedestrian detection since 2012
27 days ago
The new C 43 is powered by a 2.0-litre, four-cylinder turbo-petrol producing up to 408 bhp.
1 month ago
The GLE 53 PHEV has a combined system output of 536 bhp and 750 Nm - up from the standard 53's 429 bhp and 560 Nm.