Mercedes plans to enter Tier II and III towns across India

Mercedes Benz, is planning to enter Tier II and III towns across India in order to increase its sales. Wilfried Aulbur, managing director, Mercedes Benz India, commented that a pressure is building up in some of the top companies of India like Infosys, TCS, etc for a change in their car policies. The senior officials of these companies use luxury cars when they are abroad but they do not use these cars in India. He further added that Mercedes expects 15-30% of its total sales to come from Tier II and III cities. Gujarat and Kerala are among those states which have got strong demand for company's vehicles in their smaller towns and cities. Later, the company will also target the mining states.

Mercedes Benz recorded a sale of total 521 cars last month. This was an 80% rise over July 09. During the first seven months of this year, that is, from January to July 09, the company sold 2,922 cars. This was also a rise of 80% over the same period last year. At that time the company had sold 1,670 units. Out of these sales the E Class remained the top selling model of the company.

As a significant step towards its plan of entering into the small towns and cities, Mercedes Benz will soon open its dealerships in Jaipur, Indore and Bhubaneshwar. The company has already opened its dealership at Surat and Goa. The company is also considering some other smaller cities depending on the purchasing power of people in those cities, said Dr Aulbur. He added that the company will start a permanent second shift at the Chakan plant by year- end. The company has got enough space at this location to make up to 40,000 cars annually, concluded Dr Aulbur.