Mercedes-Benz sets aside Rs 200 crore for new product investments in 2024

Mercedes-Benz announces a substantial Rs 200 crore investment in India for 2024, focusing on new products, manufacturing, and digitalization. Celebrating record sales in 2023, the company aims for double-digit growth, plans to introduce 12+ new car lines (including EVs), and eyes a stronger EV presence, setting sights on capturing 20-25% of sales in the coming years.

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In a strategic move, Mercedes-Benz, the renowned German luxury carmaker, announces its plan to infuse Rs 200 crore into India's market in 2024. The investment aims to bolster various facets, spanning new product launches, manufacturing enhancements, and digital initiatives. This initiative comes on the heels of a momentous achievement for the brand, clocking an all-time high of 17,408 units sold in 2023.

Spearheading this initiative, Santosh Iyer, the Managing Director and CEO of Mercedes-Benz India, unveiled the ambitious blueprint. With an eye on commemorating three decades in India, the company pledges an additional Rs 200 crore injection into its Pune facility. This decision elevates the total investment in India to an impressive Rs 3,000 crore, reinforcing a resolute commitment to the market.

Highlighting the monumental stride in sales, 2023 witnessed a remarkable milestone, registering a 10% surge compared to the previous year, reaching the pinnacle of 17,408 units sold. Undoubtedly, this monumental achievement eclipsed their previous record set in 2022, marking an upward trajectory for the brand.

Optimism looms large for 2024, with Iyer expressing bullish aspirations for "double-digit" growth, despite the potential ebb and flow in supply and demand dynamics. Presently, the company boasts an order bank of 3,000 units, indicating a sustained market interest.

The roadmap for 2024 appears robust, with Mercedes-Benz India poised to introduce an impressive lineup of over 12 new car lines. Among these, the focus pivots significantly towards three electric vehicles (EVs), showcasing the brand's commitment to sustainable mobility. Notably, half of these launches target the top-end vehicle segment, catering to discerning buyers looking at models priced at Rs 1.5 crore and beyond.

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Maintaining a steady focus on EVs, Iyer underlines their burgeoning significance in sales, constituting 4% of the total sales in 2023 and experiencing a triple-digit growth trajectory.

The SUV segment continues to dominate, commanding a lion's share of 55% in total sales, while sedans make up the remaining 45%.

Looking ahead, Iyer envisages EVs contributing substantially, accounting for 20-25% of their sales within the next four years. To fortify customer service accessibility, plans are afoot to establish 20 new workshops across 10 cities in India.

Amidst speculation about Tesla's imminent foray into the Indian market, Iyer displays confidence in the government's policies. Stressing the need for a level playing field for both established and new entrants in the Indian market, Iyer advocates for supportive policies that encourage healthy competition and growth.