Mercedes-Benz will be the first luxury carmaker in India to have 100 dealerships.
Mercedes-Benz India has had a robust product offensive and has been filling all the white gaps in its portfolio. The Stuttgart based carmaker has also invested significantly in expanding its dealerships and service networks across the country. Till date, Mercedes-Benz has 95 dealerships in India and now ready to hit a century here. The Company is planning to open five more dealerships in the South-western region and expand its dealership count to 100 by the end of this financial year.
Speaking to the NDTV, Car and Bike on the sidelines of the 2018 C-Class facelift launch, Michael Jopp, Vice President- Sales & Marketing, Mercedes-Benz India said, “We have made significant investments in expanding our dealership and service network in the last two years. As we speak today, we have 95 dealerships in India and 100 is within reach this year.” A common challenge that alike any other the luxury carmaker even Mercedes-Benz was worried about is choosing the apt location so as to make enough volume in order to justify the investment. But, Mercedes has drafted a well-placed strategy that helps it making the decision. Elaborating on its approach to maintain efficiency, Jopp added, “We see potential in new locations where we expect to sell at least 100 units annually as that’s the minimum number we need to support the investment made in a dealership and sustain profitability in the future. Moreover, from a long-term perspective, that’s also the least number that our dealer partners require to run the service centres along with maintaining the dealerships.”
Interestingly, if the strategy keeps panning out the way it’ been doing so far, the quoted numbers (100 units x 100 dealerships) ensures a minimum of 10,000 units of sales for Mercedes-Benz, which will give it a strong thrust to maintain its leadership position. Mercedes-Benz has been on a roll in India since 2014, when it took the lead from Audi. Today, it commands over 50 per cent of the luxury car market share with a lead of over 2500 units annually than its closest rival, BMW.