In a strategic move, German luxury carmaker Mercedes-Benz is aiming for approximately 20 percent of its total sales to come from the pre-owned car market this year. Despite facing challenges in sourcing used vehicles, the company remains confident in the robust demand for pre-owned cars in India. Mercedes-Benz India, the Indian arm of the renowned automaker, witnessed a significant surge in sales of pre-owned vehicles last year, with over 3,000 units sold. With the holding period decreasing to around 10 days, as opposed to the earlier 30 to 45 days, the company is optimistic about achieving its sales targets.
Mercedes-Benz India Managing Director & CEO, Santosh Iyer, stated, “Still, 18 to 20 percent of our total car sales will come from used cars. So last year, if we did 16,000-odd cars, I will say 3,000 plus cars were used cars, about 20 percent. Similar ratios will continue, I would say at 20-odd percent.”
While Mercedes-Benz has long been associated with luxury and performance in the new car market, the growing interest in pre-owned luxury vehicles presents an opportunity for the company to expand its customer base. The demand for used luxury cars in India has been steadily rising, driven by factors such as affordability, value for money, and a desire to experience the luxury car ownership experience at a more accessible price point.
However, sourcing quality used vehicles remains a significant challenge for Mercedes-Benz and other luxury car manufacturers. The availability of well-maintained and certified pre-owned cars that meet the stringent quality standards of the brand is crucial to sustain customer trust and satisfaction. Despite these hurdles, Mercedes-Benz India is determined to tap into the lucrative pre-owned car market and maintain its position as a leader in the luxury automobile segment.
To enhance the pre-owned car buying experience, Mercedes-Benz India has introduced a comprehensive certification program. The program ensures that each pre-owned vehicle undergoes a thorough inspection and refurbishment process, assuring customers of the car’s excellent condition and reliability. Furthermore, the company offers warranty options, attractive financing solutions, and a range of value-added services to entice potential buyers.
The success of Mercedes-Benz’s pre-owned car division can be attributed to several factors, including the brand’s strong reputation for quality and luxury, a robust dealer network across the country, and the increasing trend of customers seeking affordable luxury options. Additionally, the company’s focus on providing personalized customer service, transparent transactions, and competitive pricing has further bolstered its position in the pre-owned car market.
Mercedes-Benz India’s shift towards emphasizing pre-owned car sales is not unique to the Indian market. Luxury car manufacturers worldwide have recognized the potential of the pre-owned segment, and many have established dedicated divisions to cater specifically to this market. This strategic move allows them to capitalize on the growing demand for luxury vehicles while ensuring brand loyalty and customer satisfaction.
As the pre-owned car market in India continues to expand, Mercedes-Benz India remains committed to offering its customers a wide range of options, ensuring that they can experience the brand’s unparalleled luxury and performance. The company’s relentless pursuit of excellence, combined with its innovative strategies in the pre-owned car segment, positions Mercedes-Benz as a frontrunner in India’s luxury automobile industry.
In conclusion, Mercedes-Benz India’s ambitious target of achieving 20 percent of total sales from the pre-owned car segment this year showcases the company’s determination to tap into the growing demand for luxury used vehicles. While sourcing remains a challenge, the brand’s focus on quality, certification, and customer satisfaction sets it apart in the competitive pre-owned car market. As Mercedes-Benz continues to cater to the evolving preferences of Indian car buyers, it is poised to strengthen its position as a leading luxury car manufacturer in the country.
