© Reuters. FILE PHOTO: Totally different automobile fashions of Mercedes-Benz are parked on the firm’s car meeting plant in Chakan, outdoors Pune, India, June 11, 2015. REUTERS/Danish Siddiqui/File Picture
By Aditi Shah
NEW DELHI (Reuters) – Mercedes Benz expects double-digit gross sales development in India this 12 months, regardless of issues {that a} weaker rupee might enhance automobile costs, the pinnacle of its native unit stated in an interview.
The German luxurious carmaker’s gross sales in India rose 41% final 12 months to fifteen,822 automobiles, its highest ever within the nation, and it has an order backlog of round 6,000 automobiles, Santosh Iyer, managing director for Mercedes-Benz India, instructed Reuters.
One danger to the expansion of India’s luxurious automobile market is a weakening Indian foreign money, which might pressure Mercedes to extend home costs as imported parts get pricier, he stated.
The rupee fell 10% towards the greenback in 2022, its steepest drop since 2013, making it the one of many worst performing Asian currencies.
“One of many largest dangers we see for us is the alternate fee. With the rupee weakening a bit extra, that may lead us to extra value will increase. In order that’s some headwind we see on the subject of the expansion potential,” Iyer stated.
“However we’re beginning the 12 months with a really wholesome order financial institution and that offers us the boldness of a double-digit development even for 2023,” stated Iyer.
Mercedes plans to launch 10 new automobiles in India in 2023, most costing greater than 10 million rupees ($120,000), the top-end section that grew 69% in 2022. The brand new launches will embody gasoline automobiles, electrical automobiles (EVs) and plug-in hybrids.
The corporate launched three EVs in India in 2022 together with a regionally assembled, electrical mannequin of its flagship S-Class sedan. EVs have seen robust demand, with Indian prospects ready 4 to 6 months after reserving their automobiles. Iyer needs to scale back this to 2 to a few months earlier than launching extra EVs.
India’s EV market is gaining momentum – Renault (EPA:) is contemplating constructing a mass-market EV regionally, Reuters reported on Friday, in a renewed push right into a market the place gross sales of such automobiles anticipated to develop rapidly from a small base.
Home carmaker Tata Motors (NYSE:) and overseas gamers like Stellantis and Hyundai Motor have additionally lined up EV launches.
Mercedes has seen an easing of a world semiconductor scarcity, however nonetheless faces some disruption on account of a scarcity of components and delayed shipments brought on primarily by geopolitical points, power disaster in Europe and pandemic-related lockdowns in several components of the world, Iyer stated.
He predicted it should take 12 to 18 months for the state of affairs to normalise.
($1 = 82.5410 Indian rupees)
