Mercedes-Benz would spend Rs 200 crore in India this year on new models, manufacturing processes, and digitalization to improve its position after selling a record 17,408 units in 2023, according to a senior company executive on Monday.
Mercedes-Benz India will introduce more than 12 cars in 2024, including three electric vehicles, half of which would be in the top-end vehicle sector (TEV) and priced from Rs 1.5 crore.
“This year is significant because we are celebrating Mercedes-Benz’s 30th anniversary in India. We want to spend an additional Rs 200 crore on our manufacturing in Pune. This results in a total investment of Rs 3,000 crore in India. So that’s a significant statement of purpose,” said Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, in an interview with PTI.
These expenditures will go into manufacturing operations, new product startups, and the digitization of the production process, he said.
According to Iyer, the firm had its greatest year in India in 2023, selling 17,408 units, or a 10% increase.
Mercedes-Benz India had previously had its highest-ever sales in 2022, with 15,822 cars.
On the prognosis for 2024, Iyer said that the business expects “double-digit” growth despite volatility in both supply and demand.
Currently, the company’s order bank has 3,000 units.
On the product launch strategy, Iyer said, “We are looking at 12-plus new car lines to be released in ’24, with 50% of them being in the top-end vehicle class. These will include three new electric vehicles.” According to Iyer, the TEV category continues to generate brand ambition, and three new EVs set to come in 2024 will expand the company’s EV portfolio.
“EVs now comprise 4 percent of our total sales and the segment witnessed a trebling of growth in 2023,” he went on to say.
Mercedes-Benz India also introduced its new GLS luxury SUV in petrol and diesel models, priced at Rs 1.32 crore and Rs 1.37 crore, respectively.
According to Iyer, SUVs account for 55% of total business sales, while sedans account for 45%.
He added the three new EVs would be in the entry-luxury, core luxury, and TEV sectors.
When questioned about the future contribution of EVs to overall sales, he responded, “We still expect EVs to account for 20 to 25 percent of our sales within the next four years.” To get closer to clients in servicing, he said that Mercedes-Benz India would open 20 new workshops in 10 new cities by 2024, including Jammu, Udaipur, Amritsar, Patna, Valsad, Agra, Kannur, and Kottayam.
Regarding claims that American electric automaker Tesla is seeking special subsidies to build up a facility in India, Iyer said, “We are pretty confident that if the government announces any policy, it will be a level playing field for the current manufacturers who have invested in India.” He did, however, add that new companies in the area are welcome “because it will only accelerate the market adoption of EVs.”
“We have always been supportive of free trade and imports as long as it is a level playing field for the existing investments and for the new ones,” Iyer was quoted as saying.
