German luxury carmaker Mercedes-Benz expects sales in India to remain slow for the first half of 2019, picking up after the general elections conclude in May.
“In 2019, we would expect... like in any election year… prior to the election you have a slow movement. As soon as the election is done, new government sets out… hesitation reduces and people start purchasing,” Mercedes-Benz India managing director and chief executive officer Martin Schwenk told The Hindu.
Stating that not every year was the same, Mr. Schwenk said that the “situation is conducive for growth” for the brand given the footprint, strong dealer network and good products.”
Presently, the automobile market is seeing subdued consumer demand due to factors such as high interest and insurance costs, besides uncertainty in the pre-election phase.
The carmaker launched its C 43 4MATIC Coupé in India with price tags starting from ₹75 lakh. This is the first-ever two-door coupe in the AMG 43 line, introduced by Mercedes-Benz in India.
It is powered by a 3.0-litre V6 biturbo engine, producing 287kW of power and 520 Nm of torque, which accelerates the vehicle from zero to 100 km/hr in 4.7 seconds.
Multiple challenges
On challenges that he sees in the Indian market, Mr. Schwenk said: “[The] challenges are multiple. I think, it is always difficult to predict the future and in India, we always don’t know what the future is bringing.
“For example, how will electrification work out? At the moment, no big customer demand, not a lot of infrastructure and not much government policy around that…one challenge if that would change quickly or it doesn’t change…It is definitely something which will impact our cause as well.”
He also said that the company worked in the “framework of relatively high import duties and GST cess” and lowering them would further grow the luxury and premium segment while also having a trickle-down effect the economy.