Mercedes-Benz is going to fight back

After 15 years of being the undisputed king of the luxury auto business in India, Mercedes Benz was unceremoniously dethroned by arch rival BMW in March 2010. BMW, which edged out Mercedes again in this last financial year by posting sales of 7,079 cars verses Benz’s 6,670 zoomed past its rival after just five years of entering the Indian market. Ironically, the loss of the number one position happened at a time when Benz has grown at a record 80 per cent clip last year. Another German rival, Audi, also had a good run—especially with its wildly popular A6 sedan—since entering the fray in 2009.
India is no China when it comes to luxury auto sales—Mercedes alone sold 92,200 of its cars in China last last year. However, the Indian market is nascent and growing rapidly. Around 21,000 luxury vehicles are expected to be sold in here in 2011, and slated to increase almost 10-fold to 200,000 units over the next 10 years. India is unique in that it holds great promise for both ends of the market—the small car as well as the luxury vehicle. Consequently, Benz hopes to entice both these kinds of consumers.