From Dharwad to Jalgaon, Mercedes-Benz wants to capture the hinterland of India

MUMBAI: Aurangabad, an industrial city in the remote Marathwada region of Maharashtra, shocked the country eight years ago when locals bought 150 Mercedes-Benz cars worth Rs 65 crore. A few months later, another group of locals placed a joint order for 101 BMW cars. "We want to show the world that Aurangabad is not more backward but ahead of the metropolises," said one of the buyers.

Mercedes-Benz India must have noted what the buyer said. Known for the restoration of wealthy metropolises, the company is now focusing on Level II and III cities in India. He started looking for buyers a long time ago, but now he wants to make sure that these buyers get quality service where they are.

Good roads and increasing wealth in the interiors have given the elite mark enough reason to get away from the subways.

Mercedes-Benz strengthens its marketing strategy to reach high-end customers in tier II and III cities. The company operates 15 markets such as Jalgaon, Gandhinagar, Jamnagar, Valsad, Kutch, Amravati, Udupi, Bellary and Dharwad this year to make basic service available to a luxury car buyer in these locations, according to a report from TOI.

The German automaker plans to launch a 'service-on-wheels', a bespoke Bharat-Benz 40T semitrailer equipped with a mobile aerial work platform, diagnostic equipment, d & # 39; # 39; standard and special tools with a customer area. This will not only provide convenience to customers, but will make vehicle service locations more accessible, away from existing service networks.

Currently, Level II and III cities account for approximately 15 to 20% of Mercedes-Benz's overall sales in India and expect them to increase through such initiatives. The company, which opens 10 to 12 outlets a year, currently has 93 points of sale in 45 cities.

In March. Mercedes-Benz has announced the launch of its unique "Mercedes-Benz Brand Tour" customer-centric program to strengthen its presence in emerging tier II and III cities.

The Brand Tour focuses on regions with potential customers, who have always aspired to own a Mercedes-Benz, but have not had the chance to discover the brand because of an absence of showroom in their city. Mercedes-Benz began the tour of the brand traveling to Aurangabad, Udaipur and Allahabad and planned to travel to 11 other cities, including Haldwani, Ranchi, Arunachal, Shimla, Thirunalveli, Vizag, Gandhinagar. Vapi, South Goa, Kannur and Shimoga.

After recording record sales in 2017, the Indian luxury car market is poised to reach a new high this year. Sales surpbaded 20,000 units in the first half, increasing to double digits every month until June with an average growth rate of 12 to 13%. Total sales for 2017 were approximately 39,000 units, an increase of 17% over the previous year.

"We have seen Tier I and II cities with strong sales potential become key centers for future growth, which is an encouraging trend that highlights the market potential of small to medium-sized cities. and long-term and we will continue our expansion there, "said CEO and MD Roland Folger.

BMW India is also looking at small towns as the next frontier to spur growth. BMW is also focusing on the hinterland, opening sales outlets in Ranchi, Aurangabad and Madurai recently. He also plans to open outlets in seven cities that he plans to expand by the end of 2018.

The improvement of road infrastructure in the country's interiors is an important factor behind luxury car sales. In addition, the fascination for electric cars among the metropolitan elite is not a positive signal for luxury car manufacturers.