An observation by a top executive of Mercedes-Benz India that systematic investment plans (SIPs) are the luxury car brand’s biggest competitors in India has drawn many reactions on the internet.
"While the luxury car industry is growing at one of its fastest paces post-pandemic, actual sales are a far cry from potential and wealth that India carries," Santosh Iyer, the sales and marketing head of Mercedes-Benz India, told the Times of India in an interview.
He will take over as MD and CEO of Mercedes India operations from January.
"While there are 15,000 people inquiring about luxury cars every month, the actual order size is about 1500 units. So, there are still 13,500 customers who desire to own a Mercedes-Benz, but postpone their purchase thinking that its fine, maybe, I should continue (with) my SIP or maybe the next dip (in markets) is there.”
Iyer head has also asked his sales team to look into the issue of SIP investments in order to realise higher growth rates.
“They (SIPs) are our competitors, I tell my team if you are able to break that (SIP investment) cycle, then exponential growth is a given,” he said.
“Humble SIP? Well it apparently is giving Mercedes some serious competition,” Edelweiss CEO Radhika Gupta tweeted.
Many users mocked the top Mercedes India executive for drawing comparisions between the investment plan and luxury cars.
Humble SIP? Well it apparently is giving Mercedes some serious competition. pic.twitter.com/wREWRDVW5j— Radhika Gupta (@iRadhikaGupta) November 28, 2022
‘Netflix competes with sleep. Now Mercedes complaints about SIP culture,” another user tweeted.
“Investing in SIP has greater return -monetarily and in mental peace - than driving a Mercedes on Indian city roads. Please someone tell this MBA,” Anand Sankar tweeted.
Mercedes complains about India's SIP culture .They actually want Indians to abandon ours, our kid's future and buy a Mercedes car? Unreal.
Continue SIP mere dost log. Increase it if possible pic.twitter.com/OfqOa2wYWq
— Neil Bahal (@NeilBahal) November 28, 2022
Cheapest Mercedes in India starts at INR 50 Lacs and comes with an EMI of ~ INR 80,000.India's avg monthly SIP amount is < INR 3000
Either Mercedes is coming with a INR 5 Lac luxury car or they don't know India as yet!
source: carwale & cafe mutual pic.twitter.com/XqMgHEcYuO
— pj (@BeingPractical) November 28, 2022
“They actually want Indians to abandon ours, our kid's future and buy a Mercedes car? Unreal,” Neil Bahal tweeted.
Recently, Mercedes-Benz India appointed Lance Bennett as Vice President, Sales and Marketing, with effect from February.
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