21560
Mercedes-Benz gears up to regain market share
Posted on 22 Jun 20124,197 Views Comments
Mercedes-Benz may have lost pole position in car sales in India, but MD Peter Honegg has a few tricks up his sleeve to make sure that the automaker gets back on top
From being the number one (and only) luxury car brand in India in 1995, Mercedes Benz may have slipped a bit down the rankings over the last few years. But Peter Honegg, MD & CEO, Mercedes-Benz India isn’t losing sleep over it.
“Till a few years ago, we were selling 2,000-3,000 cars a year. Those were the days when we were the only players in the market. With competition coming in, clearly the market share gets divided between players. But the real story lies in volumes,” he says, putting things into perspective. To be sure, the luxury car market is estimated at about 23,000 units and Mercedes-Benz India has been growing at 30% over the last few years, selling almost 7,500 units in 2011, far more than it ever has.
But while he may not be losing sleep over it, he most certainly isn’t taking it easy. Having spent 36 years with the German automaker across various locations, Honegg knows what he is up against. “In business you have to learn a little every day, but in India, I feel that you must learn a little bit faster.”
Having spent a year in the country now, Honegg has come to terms with the diversity he sees here. “There is no one India, just like there’s no one China, That is what I tell our folks in Germany,” he says. At the same time, while the market is too small to have a specially tailored strategy for each region, the company does give its dealers the freedom to tweak their communication slightly to appeal more to their local audience.
Internationally, Mercedes-Benz has a stated goal of regaining its number one position by 2020, and the same applies for India. However, Honegg makes it clear that the growth will not come at the cost of the business. “We have a philosophy of profitable growth and will not sacrifice profits to focus upon only growth. It’s fine if we sell a few cars less, but profitability is very important. We are the most premium brand and our price positioning reflects that,” he says.
A simple back-of-the-envelope calculation shows that there is a potential to see a lot more in India. There are around 1,93,000 millionaires (in USD) in India as of 2011, says Honegg. Globally, people tend to switch cars in the luxury segment every three-four years, which means that the average market size in India ought to be close to 50,000 at present. It’s barely half that size.
Do you like this story?
- Previous Story
- Next Story
SsangYong confirms Mahindra as sole distributor in South Africa
Readers' opinions ( 0 )
Post a Comment
Post a CommentMercedes-Benz A-Class : Expected Features
by Team Zigwheels
Here is a list of some great safety and comfort...
2013 Mercedes-Benz GL-Class Launch : Video
by ET Now
Now available at Mercedes-Benz dealerships pan...
2014 Mercedes-Benz S-Class Official Photos
by Team ZigWheels
Here are the first official images of the new...
The Ferrari Way : Special Coverage
Ferrari has been voted as the most powerful brand in the world according to Brand Finance and the...
Chevrolet Enjoy : Special Coverage
Designed to take on everything from the Maruti Suzuki Ertiga to the Toyota Innova the Enjoy is...
