Celebrating 30 Years in India, Mercedes-Benz Announces strategic plan to invest ₹200 crore in India
In a strategic move to fortify its position in the Indian market, German luxury carmaker Mercedes-Benz is set to invest ₹200 crore this year. The investment will be directed towards new product launches, manufacturing operations, and the digitization of its processes. The decision comes on the heels of the company’s remarkable performance in 2023, achieving record sales of 17,408 units.
Landmark Investment in Pune Factory
Mercedes-Benz India’s Managing Director & CEO, Santosh Iyer, revealed in an interview that the ₹200 crore investment will be a crucial addition to the company’s factory in Pune. Moreover, the total investment in India will reach ₹3,000 crore. Further, underscoring the company’s strong commitment to the Indian market.
Strategic Focus on Top End Vehicle Segment (TEV)
The luxury carmaker plans to launch more than 12 products in 2024, including three electric vehicles. Notably, half of these launches will be in the prestigious Top End Vehicle (TEV) segment, with prices starting at ₹1.5 crore. Further, Iyer emphasized the significance of this move, stating, “This year marks a special year as we celebrate 30 years of Mercedes-Benz in India.”
Record-breaking 2023 Sets Stage for Growth in 2024
In 2023, Mercedes-Benz India witnessed its best-ever year with a sales growth of 10 percent, totaling 17,408 units. The company’s optimistic outlook for 2024 aims for “double-digit” growth, despite challenges in supply and demand dynamics. Currently, the order bank stands at 3,000 units.
Expansion of Electric Vehicle Portfolio
Highlighting the growing importance of electric vehicles (EVs), Iyer mentioned that EVs now constitute 4 percent of total sales. Further, the company plans to launch three new EVs in 2024, catering to different segments, including entry luxury, core luxury, and TEV.
Geographical Expansion for Enhanced Customer Service
Moreover, to enhance customer service, Mercedes-Benz India plans to establish 20 new workshops in 2024, spanning across 10 new cities. This expansion includes cities like Jammu, Udaipur, Amritsar, Patna, Valsad, Agra, Kannur, and Kottayam.
Welcoming Competition and Government Policies
Responding to reports about Tesla seeking incentives for setting up a plant in India. Further, Iyer expressed confidence in a level playing field for all manufacturers. Moreover, he added, “We are supportive of free trade and imports assuming that it is a level playing field for existing investments and for the new ones.” Iyer welcomed new players, emphasizing that their entry would intensify the adoption of EVs in the market.