New Mercedes-Benz Boss Aiming To Boost Sales

Mercedes SL350
German Luxury carmaker Mercedes-Benz was the first foreign car maker to have entered the Indian car market. Despite the early bird advantage, Mercedes-Benz's sales was overtaken by BMW, which entered the Indian scene only five years ago. Mercedes-Benz is now looking at increasing its sales and wresting back its position as India's top selling luxury carmaker. The responsibility of boosting Mercedes-Benz's sales has been wrested to Peter Honegg, the MD and CEO of the carmaker's Indian division.

Mr Honegg who took up this position January this year has been credited with boosting Mercedes-Benz's sales in China. He considers India as a different challenge and believes India will become the world's No1 or No2 passenger car market. He believes Mercedes-Benz's image as a manufacturer of safe and luxurious cars will help it compete with emerging competition.

Mr Honegg also emphasized that Mercedes-Benz also makes sexy and beautiful cars. The customer's perception of the German carmaker needs to be changed according to him. He said: “We have very, very sexy cars. So the challenge is to change the perception in our customers' minds." Mercedes will be increasing its marketing and branding of its sporty AMG vehicles.

Mr Honegg also accepted the impact of increasing petrol prices on consumer behaviour. He said even luxury car buyers were preferring to buy diesel cars and Mercedes-Benz was responding to this change. Two thirds of Mercedes-Benz's sales are now petrol powered and it will increase the number of its diesel cars.

The German carmaker is also contemplating a brand strategy under which the perception of its brand would be brought more into the direction of young, dynamic and sportive. In an a bid to boost its presence in India Mercedes-Benz will increase the number of showrooms in India. He Honegg said the carmaker would add 10 to 15 showrooms across India's tier 2 and tier 3 cities where luxury car sales have increased recently.

Article Published On: Wednesday, June 22, 2011, 14:20 [IST]
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