Mercedes India eyes semi-urban cities

In an attempt to explore new avenues for its luxury cars in India, Mercedes-Benz India Limited has decided to enter tier two and tier three cities in the country. As part of the initial expansion spree, the company aims to sell around 50 units per year in these cities.

However, the decision of expansion has come at a time when reports of dark clouds on car sales are hovering over the auto market. Contrary to the downturn reports Mercedes-Benz India's sales during January-March 2011 grew by 67 percent with March being the best month for sales with Mercedes-Benz C-class as the major contributor.

Besides targeting new markets, Mercedes, sensing good scope and demand in India, is also thinking of attractive offers on its diesel variants. This decision could also be the obvious outcome of the impending hike in fuel prices.

Furthermore, giving fire to its expansion strategy, Mercedes-Benz India has also reportedly added a financial wing in order to provider better finance facilities. Speaking to the press on the occasion of the completion of his 100 days in Mercedes India managing director and CEO Peter T. Honegg reportedly detailed about the expansion spree of Mercedes-Benz and what Mercedes India would focus on in the next three to five years.

However, Mercedes-Benz India is yet to disclose the names cities where it would be expanding its reach, but it is for sure that in the first phase over seven to ten prominent cities in India where the company finds potential buyers, will be targeted, sources said. Besides this, Mercedes is taking a long-term perspective for this expansion drive and will be heading this path for the next three to five years. Similar to Mercedes, General Motors has recently opened its first ever dealership in Andaman and Nicobar Islands.

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