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Revival just around the corner: Mercedes Benz

While the company said it would be a challenge to maintain last year's number in 2019, Mercedes-Benz India is confident of returning to double-digit growth in 2020.

, ET Bureau|
Last Updated: Sep 06, 2019, 06.35 AM IST|Original: Sep 06, 2019, 06.35 AM IST
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NEW DELHI: Mercedes-Benz India, the top luxury-car company in the country, believes that the market has bottomed out and that a revival is on the anvil.

With the market facing severe liquidity challenges, the local unit of the German automaker has infused more than ?100 crore in dealers to recapitalise their inventory and support working capital.

While the company said it would be a challenge to maintain last year's number in 2019, Mercedes-Benz India is confident of returning to double-digit growth in 2020 with it planning more than a dozen product launches and upgrades, managing director Martin Schwenk said.

Mercedes-Benz had scaled down its business plans for India, but Schwenk said it had not stopped any investment. On the contrary, it is hiring and adding more products and network to expand the reach and boost the customer base, he said. In the last six months dealers have invested over ?50 crore in setting up of new facilities.

“The premium and luxury car market can’t remain in the slowdown for long. I am sure it is a temporary phenomenon. I am confident that growth will be back in the next couple of months," Schwenk told ET on the sidelines of an industry event. “Next year this time we will be in a very different situation.”



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