Sales of Mercedes Benz vehicles go up by 36 per cent from last year in Kerala
Mercedes-Benz registered a mammoth 36 per cent sales growth in the first half of this year here, outpacing its national growth of 25 per cent
The South Indian state of Kerala has turned out to be an interesting destination for Mercedes Benz India Limited (MBIL), as it is now the leading destination for luxury cars in the country. Mercedes-Benz registered a mammoth 36 per cent sales growth in the first half of this year here, outpacing its national growth of 25 per cent.
At the current rate, Kerala is contributing 6 per cent to national sales of luxury car maker, playing a major role in boosting sales, as per Eberhard Kern, Managing Director and CEO of MBIL. On the other hand, he was also apprehensive in sustaining the sales momentum due to a recent increase in taxes on luxury vehicles by the Kerala State Government. In order to tide over the current state financial crisis, Kerala Government has increased luxury vehicle taxes by 15-20 per cent.
While answering a question on the impact of taxes on sales, he said, "It may impact the demand for the short term as the 20 per cent rate is the highest in India." This was on the sidelines of the opening of a Mercedes Benz dealership near Aluva.
Talking about national sales, Kern said that the company has emerged as the fastest growing luxury brand by recording a 25 per cent growth in the first half, selling 4,717 vehicles against 3,765 in the corresponding period last year. Incidentally, 55 per cent of its sales came from smaller towns this year, compared to 45 per cent from metros.
In contrast to a stagnant market last year, he said the there were several positive trends with changes in consumer sentiments since May, largely due to the Modi government. He pointed out that the company's ever expanding product portfolio, good dealer network and increase in touch points have all contributed towards sales growth.