Mercedes-Benz, the renowned German luxury car manufacturer, is placing a significant bet on its lineup of luxury sports utility vehicles (SUVs), aiming for them to constitute 60 percent of its overall sales in India by the end of this calendar year. This strategic shift comes as consumers increasingly veer away from sedans, which were once the primary offerings of luxury carmakers in the country.
Buoyed by the encouraging response to its latest offering, the all-new GLC launched in August last year, Mercedes-Benz is optimistic about maintaining this momentum throughout the year, a senior company official said. The sustained demand for its other luxury SUV models like the GLA, GLS and GLE further reinforces this confidence, the official maintained.
"Our GLC has consistently been a top performer in the SUV segment, and we anticipate a similar trend this year. The refreshed GLE and GLS models have also garnered strong interest, reflecting the robust demand across our SUV portfolio," Lance Bennett, vice president of sales and marketing at Mercedes-Benz India told Moneycontrol.
The company's renewed focus on the SUV segment includes the launch of the second-generation GLC SUV , priced at Rs 74.75 lakh. This was followed by the facelifted GLE in November 2023 and the updated GLS earlier this year, priced at Rs 1.32 crore. The GLA, positioned as the most affordable option, continues to attract customers with its competitive pricing, ranging from Rs 50.50 lakh to Rs 56.90 lakh (ex-showroom).
When asked about sales targets for the current year and the anticipated contribution of SUVs to the overall sales figures in 2024, Bennett hinted at a double-digit growth projection. While declining from providing model-wise breakdowns, he highlighted the remarkable performance of SUVs in the first quarter of the year. He emphasised the company's aim to maintain a 60:40 ratio between SUVs and sedans, albeit with slight fluctuations.
Looking ahead, Mercedes-Benz is gearing up for an extensive lineup expansion, with plans to introduce several new models, including the CLE Coupe and V-Class luxury multi-purpose vehicle in May, followed by the GLB 2024 and E-Class later in the year. Additionally, the company is venturing into the electric vehicle segment, and market chatter is that three electric car launches will be the EQA, EQS and Maybach EQS 680.
Refusing to address speculation, Bennett would only confirm that the new Mercedes-Benz E-Class will be rolled out in India.
As per auto data intelligence firm JATO Dynamics India, SUVs have been gaining immense popularity globally due to their versatility, perceived safety and the lifestyle they represent. Furthermore, consumers are increasingly gravitating towards larger vehicles that offer more space, higher ground clearance and a commanding driving position.
“This projection indicates that Mercedes-Benz is likely to continue expanding and emphasising its SUV lineup, possibly introducing new models or refreshing existing ones to cater to this demand," said Ravi Bhatia, president and director, JATO Dynamics India. “ SUVs generally have higher profit margins for automakers compared to smaller vehicles. By concentrating on SUV sales, Mercedes-Benz may be aiming to boost its overall profitability and revenue streams” he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
