11 January
2017
PUNE: The
Pune-based company clocked sales of 13,231 units in January-December 2016, a
drop of 2 percent over 13,502 units sold in calendar year 2015.
India's largest luxury car maker Mercedes-Benz recorded its
first decline in sales in five years hurt badly by the court-imposed
eight-month ban on sales in Delhi-NCR. The Pune-based company clocked sales of
13,231 units in January-December 2016, a drop of 2 percent over 13,502 units
sold in calendar year 2015.
Sales stagnated for the luxury car maker last year when the
Supreme Court imposed a ban on sale of diesel cars having more than 2 litre
engines on concerns over pollution. The ban imposed in December 2015 was lifted
last year in August after the apex court asked the authorities to impose a 1
percent environment cess on sale of such vehicles.
Roland Folger, Managing Director and CEO, Mercedes-Benz India,
said: “2016 was a year of market challenges but despite facing such challenges,
it is quite satisfying for us to have made the best of the opportunities that
we had. We remain bullish on our outlook for 2017”.
Ban on sale of large diesel cars coupled with excise duty hike
and demonetisation took a toll on demand for luxury cars in India. At around
35,000 units, sale of luxury cars in India in 2016 are expected to remain
stagnant compared to 2015. "If not for the ban in Delhi-NCR, our sales
would have closed with a double digit growth," said a Mercedes-Benz
executive. Mercedes-Benz launched 15 products in 2015 followed by 12 last year.
It is expected to launch at least 9 new products in 2017.
Meanwhile, India's third largest luxury car maker BMW said it
delivered 7,861 cars in 2016 posting a growth of 14 percent as compared to 2015
when the German car maker clocked 6,890 units sales. Despite the growth, BMW
managed to just beat its 2013 total of 7,327 units.
Sales in 2014 and 2015 stood at 6812 units and 6890 units
respectively. Frank Schloeder, President (act.), BMW Group India said: “2016
has not been an easy year for the automotive industry and that applies equally
to BMW Group India. During the course of the year, developments in the Indian
economy and policy framework shook the mechanisms of the auto industry."
"BMW Group India was faced with challenges no less than any other
automobile manufacturer and was confronted with strong pressure from the
beginning of the year. Despite a challenging business environment, BMW Group
India has increased sales and market share," he added.
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