Mercedes-Benz India targets double-digit growth during 2014, 2 more models to follow

Luxury carmaker Mercedes-Benz India is targeting double-digit growth in CY 2014. It has already notched sales of 4,770 units in the first half of the year (January-June) and sales could end in the same range or higher than last year’s report card of over 9,000 units.

Mercedes-Benz today launched its game-changer model – the GLA-class luxury SUV in New Delhi that will be imported in completely built unit kits from Germany. It has been positioned below its M and GL-class SUVs in the below-Rs 55 lakh segment where Mercedes did not have a SUV model till date. In India, the carmaker has SUVs in the M-class and the hugely expensive GL-class and has been unable to take on smaller SUVs from rivals BMW and Audi.

At present 25 percent of Mercedes-Benz India’s sales come from SUVs and it has grown 84 percent this year over the previous year in this category. Mercedes has already received pre-bookings of 600 units within 18 days of opening bookings. According to Eberhard Kern, MD & CEO, like the S, ML and GL-class models, the GLA-class too will also have a waiting period.

Available in Style and Sport editions, the GLA-class 200 CDI Style is priced at Rs 32.75 lakh, the 200 Sport comes at Rs 36 lakh petrol and the 200 CDI Sport carries a sticker price of Rs 36.9 lakh (all ex-showroom Delhi).

“The GLA-class is an important element of our product strategy globally as well as in India and it will join our existing volume drivers. The GLA-class combines the key design values of progression and tradition and is the SUV of the future and undoubtedly is the next milestone of our growth strategy,” said Kern. He is bullish that the GLA will redefine the segment and make an important contribution to the product offensive of Mercedes-Benz in India.

The GLA-class will be available in two engine options – the 2.0 petrol and the frugal 2.2 diesel. The GLA’s modern four-cylinder engine with turbocharging and direct injection are mated to a 7G-DCT 7 speed dual clutch transmission. The dual clutch transmission combines the comfort of a seven-speed automatic transmission with the driving dynamics of a manual transmission. This leads to fast, smooth gearchanging without any interruptions in tractive power and results in improved acceleration. The shift characteristics can be preset from fuel saving to sporty via the economy, sport and manual transmission modes.

The GLA launched in the luxury small and mid-SUV segment comes with segment first features like 7 airbags, 18-inch alloy wheels, ground clearance of 183mm, reversing camera, memory seat for driver and front passenger, multifunction steering with paddle shifts and extended warranty for third year under Star Care programme. In addition, it has driver assistance features of hill start as well as safety features. They support the driver by stabilising the car on difficult, wet and slippery terrain. These assistance systems will monitor and optimise traction as required. 

Kern said that the GLA-class SUV market in India is worth a few thousand units and Mercedes plans to grab a major share of this segment with its latest-generation SUV.

In line with the company’s plan of launching 10 new models, the GLA was the eighth model launch during the year. Two more models will be rolled out during the year –the GLA 45MG and another model. In addition Mercedes plans to start assembly operations of its CLA-class next year, making it the sixth model to be locally assembled at its Chakan, Pune plant. 

Mercedes-Benz has invested Rs 250 crore in expanding the production capacity at its Chakan facility from 10,000 to 20,000 units as part of its aggressive growth plan in India and this will be achieved in a few weeks. This has taken the company’s total investment to Rs 850 crore in the plant.