Mercedes Benz in Chakan, India
Mercedes Benz sold more than 15,000 vehicles in 2022 and expects good opportunities again this year.
(Photo: Reuters)
Mercedes Benz is expecting double-digit growth in its sales in India this year – although prices are likely to rise due to the weaker rupee. Last year, sales climbed 41 percent to a record 15,822 vehicles, Mercedes-Benz India managing director Santosh Iyer said in a Reuters interview published on Sunday.
There is currently an order backlog of 6000 cars. India has a dynamic market, especially in electric vehicles, where Mercedes also wants to make money and plans to launch ten models this year – petrol, electric and hybrid vehicles.
However, the weakening national currency poses a risk, said Iyer. As this would make imported components more expensive, Mercedes could be forced to raise prices in India. The rupee has fallen 10 percent against the dollar in the past year, the most since 2013. “One of the biggest risks we see for ourselves is the exchange rate,” Iyer said
“If the rupee weakens a bit more, that will lead us to further price hikes. So that’s some headwind that we’re seeing when it comes to growth potential.” Still, he expressed optimism. “But we are starting the year with a very healthy order situation, and that gives us confidence for double-digit growth in 2023 as well.”
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E-cars are currently in demand, Indian customers wait four to six months for delivery after ordering. Iyer wants to reduce the wait to two to three months before launching new EVs.
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