BMW Is Now Beating Mercedes Benz

By By: Vicky.in

Published: Tuesday, December 14, 2010, 16:05 [IST]

This year it"s BMW"s turn to overtake Mercedes Benz in the race for top slot in luxury car segment. Its sale for the duration of January-November made Mercedes to lag though it lost the slot to the latter during May this year, when Mercedes got the rise of its sale by 79.31 percent. The latest information revealed by SIAM indicated the break of BMW with a sale volume of 5345 units against 5109 units achieved by Mercedes in the period of January-November 2010. For BMW this is a rise by 60.17% from its sale of 3337 units in the same period of 2009, when Mercedes achieved a growth by 75.27% by selling 2915 units. For the whole 2009, BMW succeeded in selling 3619 units making a rise by 33.78% to reach the top slot. In 2008 BMW"s sale volume was 2705 units whereas Mercedes" sale volume in 2009 was 3247 units against its sale of 3625 units in 2008 (fall by 10.42%).

BMW"s assembling unit is near Chennai which had the capacity of 3000 annual units and the company has upgraded to deliver 5400 annual units on single shift. Further investment will invite Rs70 crore for expansion of this facility before 2012.

But the industry does not anticipate any sort of miracle or surprise thereby Mercedes may fight back. For Mercedes the numero uno is not a matter of status anymore, in the growing luxury car market, where it was the royal company. With the sale volume from these two companies and other players, SIAM expects the luxury market to reach 15000 units in this year. This was clearly expressed by the company"s CEO and MD, who said the priority now is to divert the focus to the profitable growth and enhanced customer relationship. Mercedes Benz"s plant is situated in Chakan, Maharastra where it has recently started its second shift for delivering 10000 annual units from the existing 5000 annual units. In addition t he company is investing Rs200 crore for launching the paint shop for its vehicles, which is likely to go on in another 18 months.

The condition in the camps of Audi is also promising with the sale increased - sale of 2803 units in the same period of assessment from 1645 units done in 2009( a growth by 70.40%).

Article Published On: Tuesday, December 14, 2010, 15:58 [IST]

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