by Aditi Shah
PUNE, India (Reuters) – German automaker Mercedes-Benz is banking on the thriving pool of Indian fortunes to boost sales of premium cars in India, outpacing the entry-level and mid-range market, said a senior company official told Reuters.
The number of “dollar millionaires” in India is growing, Martin Schwenk, managing director of Mercedes-Benz India, noted in a recent interview with Reuters in Pune, home to Mercedes-Benz’s headquarters and manufacturing plant. the society.
“The base is broadening and gradually expanding beyond our traditional customers,” he points out.
“Going forward, we will see higher growth rates in the luxury segment,” he adds, noting that the average age of buyers is below 40, compared to over 45 years previously.
The rise of Indian start-ups and the stock market boom has fostered the advent of a new generation of wealthy people fond of luxury brands such as Rolex, Louis Vuitton and Gucci, according to the Hurun India Wealth Report 2021.
Their number increased by 11% in 2021 to reach 458,000 and is expected to increase by 30% over the next five years, according to the report.
To capitalize on this momentum, Mercedes-Benz plans to launch ten models in 2022, including its locally assembled EQS electric sedan.
Luxury models in India account for just over 1% of total annual sales and Mercedes-Benz is the top-selling brand, with a market share of over 40%, according to automotive market data provider JATO Dynamics.
Its sales in India rose more than 40 percent to 11,242 cars in 2021, after a low of 7,893 in the pandemic-hit year 2020.
However, the main obstacle to the growth of global automakers is the current shortage of semiconductors and logistical problems exacerbated by the war in Ukraine.
(Reporting by Aditi Shah; French version Dina Kartit, Editing by Sophie Louet)
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