The demand for expensive models of luxury car companies like Mercedes Benz, Audi and BMW is increasing in India. Due to this, the waiting period on such models has increased due to the problems in the supply chain. Top officials of these companies gave this information.
Balbir Singh Dhillon, Head, Audi India, said, “In the last few months or I would say from last year the demand for C and D segment vehicles i.e. Rs 70 to 75 lakhs has increased.” He said that those who can afford such cars. Like industrialists, sportspersons and Bollywood celebrities, they are coming forward and buying luxury products.
Giving an example of the Audi Electric e-tron, Dhillon said that we are selling this car for more than Rs 1 crore. These cars are completely sold before coming to India. The waiting period has increased due to the problems in the supply chain. Earlier the waiting period for them used to be one to two months, which has now increased to four to six months.
Martin Schwenk, Managing Director and Chief Executive Officer (CEO) of Mercedes-Benz India said, “Unfortunately, we are able to deliver some vehicles to our customers after months. This includes the GLS and the GLE (SUV). These cars are not only a supply chain problem, but they are also in high demand globally. So we have to prioritize.
The company had orders for over 4,000 units in the first quarter of 2022. Mercedes-Benz India sold over 2,000 units worth over Rs 1 crore in India in 2021. These include the S-Class Maybach, GLS Maybach and the top-end AMG. The S-Class and GLS SUVs account for 30 percent of the company’s total annual sales.
On this matter, another luxury car company BMW is facing some similar cases. The demand for its expensive models has increased. Vikram Pawah, President, BMW Group India said, “We have a strong position in the SAV (Sports Activity Vehicle) segment. Its X3, X4 and X7 models are in high demand. Our growth in this segment is 40 per cent. They account for more than 50 per cent of our total portfolio.” BMW India’s SAV segment of vehicles costs more than Rs 61 lakh. The segment’s sales in the first quarter stood at 1,345 units, a growth of nearly 40 per cent.