In the last three months following the domestic market out of the COVID-19 led lockdown, German luxury car maker Mercedes-Benz India Pvt Ltd sold out over 500 cars through their online portal. These amounts include up to 30% of Mercedes-Benz pre-owned cars and the remaining were new vehicles, said Mercedes-Benz India Vice President, Mr. Santosh Iyer.
The largest luxury car player in India launched an e-commerce platform in October last year in order to try create an alternative revenue source and align itself with the rising number of digital requests and transactions. As branded accessories and goods began its sale last year, sales of pre-owned cars continued this year in January. The firm has joined hands with Roadster Inc., A USA-based e-commerce firm, and new cars have also been launched on the new platform. Roadster.Inc is a comprehensive platform that provides its customers with a payment gateway to do their business too.
Mr Iyer also adds that the sales of 500 cars online emphasized the affinity of luxury cars for customers. They have met their online goals and hope that the trend will continue. This indicates, however, that online sales make up just 15% of their total sales as major consumer base still operates with their dealers. The company expects online sales to make up 25% of its total sales by 2025, according to him, also a G-Class G 63 car worth Rs1.5 crores. Younger consumers can purchase merchandise and accessories from the company’s online platform as well. The company sold 2,948 units during the January-June period, with sales declining by 55 percent this year.
Mr Iyer also mentioned that while the demand for luxury cars in the 80 lakh segment had risen, it was the A-class and GLA models which come in the segment of 40-80 lakh, that did not do well in the market. Secondly, during the June to August period, the company saw customers delaying purchases. But, September is recording a positive return, hopefully. Iyer expects to see sales on a YoY basis from October as the first month after COVID-19.
Mercedes-Benz continues to bet on this holiday season so that December quarter sales are equivalent to last year’s corresponding period.
