Luxury Cars Giants Fail To Meet Demands

There has been a double range growth, 70%, luxury cars in the Indian market in 2010 (15000 units) making the makers find the difficulty in meeting the demand. The director for sales and marketing of Mercedes Benz expressed his dismay that the companies are not able to cope with the demand rate in spite of efforts taken. The average wait period for luxury cars has been 3-4 months against a normal 4-6weeks period. This has been the condition for the global makers like BMW, Mercedes and Audi whose capacity is full ever.
The long wait for luxury cars create a fear among the makers about the loyalty of the customers. As of now, to meet the luxury cars demand, they are being imported as CKD for assembling in the domestic facilities. The luxury cars being customized, there is no way to reduce the wait period, said an official of Mercedes and Porsche"s condition is more critical as it manufactures sports versions as per the customer specifications.
Porsche has to please the customer"s choice of colors, interiors and the embossing of the buyer"s initial in the front, making the delivery longer than normal luxury cars, said its Director for India. The company is facing disproportionate account of orders and delivery, with already 379 bookings for its Cayenne in the last year for which the delivery has been just 131 units. This clearly indicates a long wait of nearly 6 months. BMW increased its capacity in its Chennai facility at 8000 units a year but it could not meet the demand rate accurately. The waiting period for its sedan 5 series and X1 compact sports has been 4-6 months.


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