Mercedes-Benz, the German carmaker, is aiming to increase its market share in smaller cities in India, where the demand for luxury cars is expected to grow in the upcoming years. Recently, the company launched new GLA and AMG GLE 53 models and now plans to improve its sales and service infrastructure in non-metro areas to cater to the needs of its customers.
According to Santosh Iyer, the Managing Director & CEO of Mercedes-Benz India, there is significant growth happening in mini-metros in India, and the company wants to increase its customer base in these cities. To achieve this objective, the firm will be opening up 20 new workshops in 10 new cities, including Jammu, Kanpur, and Patna.
The company aims to ensure that customers in these mini-metros don't have to drive more than two hours to get their cars serviced. Therefore, Mercedes-Benz wants to move closer to customer pockets. The penetration of luxury cars in such cities remains low as compared to metros, which presents more opportunities for growth. Currently, top metros account for around 70 percent of the sales annually, with the remaining 30 percent coming from mini-metros and other smaller markets.
The luxury car market in India accounts for just over 1 percent of the total passenger vehicle sales of around 40 lakh units annually.
