By T Murrali  

Crossing very significant milestones and achieving stellar sales performance made 2019 very special for Mercedes-Benz in India. The German car maker celebrated 25 years of operations of its local entity Mercedes-Benz India that began with a local assembly facility based at the Tata Motors (then TELCO) premises, and the tenth anniversary of the independent Mercedes-Benz plant in Pune.

The year was also record-making for the company in defying the slowdown and selling more than 600 cars within a week during the festive season of 2019 bucking the automotive slowdown in the country since September 2018. This was over and above its outstanding sales performance a month ago when it delivered more than 200 cars in Maharashtra, especially in Mumbai, and Gujarat. It has also sold off the current GLE models about three months ahead of plan and has opened bookings for the upcoming new generation GLE scheduled to be launched before the Auto Expo 2020.

Mercedes-Benz India sold more than 10,500 units till October 2019. The year 2018 was the best ever as it sold 15,538 units with 1.4 percent growth over the previous year. It was the second year in a row that the company crossed sales of 15,000 units. In 2019 the company recorded its highest ever Q4 selling 3,871 units, thus registering a 3.3 percent y-o-y growth for Q4, and was able to achieve sales growth in a challenging market. Amidst strong macro-economic headwinds, Mercedes-Benz India sales volumes in Q4 also grew by 15.41 percent from Q3 2019 and the overall sales volume remained at 13,786 units from January-December 2019.

With its slogan ‘Best Never Rest’ the company carries forward the rich learning and experiences of the past 25 years to embark on a new journey towards reinventing itself for the future. As the inventors of automobile globally, Mercedes-Benz is highly confident of leading the luxury automotive industry which it pioneered in India, by not resting on past laurels and accolades but by striving to achieve excellence in the future.

The company’s factory in Pune makes nine different models including the sedans of the C-Class, E-Class, S-Class and CLA Coupé as well as Maybach S-Class and the SUVs GLA, GLC, GLE and GLS. The plant in India has been one of the first local assemblies of Mercedes-Benz to implement Virtual Reality technology, starting with the body shop training. As the implementation of Virtual Reality in the training process of the Indian plant has been a huge success, it is being implemented in other Mercedes-Benz assemblies around the world.

The Managing Director and CEO of Mercedes-Benz India, Martin Schwenk, is very upbeat about the future course of the company. When told that he is the only car company CEO in India to have roaring sales, he told this publication that the festive season had been satisfactory for the company as it saw overwhelming response to its products from across markets. This has made him even more confident. He said his company’s plans would be well implemented, especially to launch new products; it was obvious that he was being both practical and optimistic.

During a recent interaction Schwenk said that the company works with its dealers to see how it can increase their profitability by looking into their inventory and stock levels, using its product offerings and ‘wish-box’ initiatives to raise the numbers. But about the order book position he said that “it is business as usual.”

On Growth Track

From the overall sentiment among customers and the availability of finance in the market Schwenk expects the industry to grow again. “I can see, when I follow numbers, that everyone is carefully and prudently managing the situation. Inventory management is taking up a big portion of every OEM’s activity. The BS-IV to BS-VI change will create some kind of distortion. Bigger the distortion, bigger will be the inventories at that point in time. Retail numbers being higher than wholesale makes me believe that the market is getting more receptive now. If there is good awareness among all, we can move forward as an industry. Turbulence will be there but it should not be a major irritation. From the second half of 2020 this transition period will be over and we would probably see a normal growth scenario. Until then the market might behave in a way that is hard to assess depending on inventory levels, pricing, discounting and whatever is necessary. I would expect some distortion where we won’t be able to easily ascertain the natural growth momentum. But with the efforts taken by Government and industry we could expect things coming back to normal soon.”

On the transition to BS-VI he said, “Our change from BS-IV to VI usually goes with new models. We have a strategy which is basically built on major model upgrades and new models. That’s why our transition started with the S-class (last year) where we had a new model with all the technology and features in it. For our brand I don’t expect any pre-or-post-buy triggered by BS replacement.”

The V-class Elite was launched in 90 countries. In India the company registered three-digit sales of its V-class and he is happy with the growing demand though the volumes are very low. “Every time we start something fresh we are keen to ensure it gets adequate returns. We try to upgrade based on what the customers tell us. The V-class does give an element of luxury; you will feel the difference when you sit in it. We are happy that we were able to open a segment where nobody had been before.”

The fact that the V-class is in 90 countries shows that it has developed well. This model, unlike its predecessors, is very much a passenger car, almost like an SUV. This has boosted sales in many markets. The global company has seen substantially higher numbers than expected, in most of the markets, he said.

The model launched in India is the same as the model Mercedes-Benz sells in other markets. It is totally imported but it is configured according to what a particular market needs and the prospective customer demand. “We have used all the feedback generated to create an offering that fits very well in the market here. The pricing of the upper-end V-class range goes up from INR 68 lakh to INR 1.1 crore. That is a wide span where you have the V-class for many different purposes in that series.”

Schwenk said the economic slowdown has definitely impacted his company with the entire industry slowing down by at least 20 percent. “We don’t have full transparency as not many manufacturers are disclosing their numbers. It’s not always easy for us to estimate what the market is doing but we believe the luxury market is down by 15 to 20 percent. However, we have maintained our market share of 40 percent in the luxury segment.”

On the customer preference for diesel vis-a-vis petrol, he said it has not triggered too much of a question. “What the customers expect is that we give them the latest technology in any engine and meet the highest standards available. Customers are not too concerned about whether we go for BS-IV or BS-VI. They are more bothered about the features in the car, the styling, design and, of course, the price. In the smaller segment we do get questions on the type of engine used, petrol or diesel. Our diesel share is unchanged in the larger SUVs and bigger sedans. Our diesel engines are highly efficient; they not only follow BS-VI norms but also are 20 percent more fuel efficient and better in CO2 emissions. If you look at the whole mix, diesel does come out as a clean fuel with the introduction of BS-VI.”

However, not all models are uniform in giving fuel efficiency; it varies from model to model. In the E-Class vehicles, engine fuel efficiency in diesel would be more by 15-20 percent. It meets all the BS-VI norms; NOX and carbon emissions are much reduced. It is very competitive with the petrol engine.

Electric Vehicles

About electric vehicle (EV) he said, “We would also develop EVs; we have already made slow entries into the market but I think we are still in the early phase of seeing what the right set-up is for the electric. From a framework and infrastructure perspective there is still some work to be done while from the customer demand angle it is not really hot. But the electric trend will certainly grow.”

“Our company has quite a few cars lined up at the global level; by 2022 we will have 10 pure electric vehicles worldwide. We would also have plug-in hybrids that we consider specifically for countries like India with about 20 models coming within the next two years. Electric will definitely have its space though we have not introduced any model in India. Based on our global portfolio and how the market develops here we would take a call on this. We are not in a rush because there should be the right momentum to get it on the road. Considering our overall strategy for 2019 we have decided to begin with connectivity as Indians are very much into their mobile devices. That’s why ‘Mercedes Me Connect’ was launched, which connects not only the new cars but also cars that go back to 2007,” Schwenk said. (MT)

State Bank of India (SBI) has entered into a strategic partnership with Uber to offer low-cost, tailored financing solutions as well as hassle-free loan disbursement to Uber’s fleet partners.

Both new and current Uber fleet partners will benefit from the partnership, which will enable them to easily grow their businesses and support the continued expansion of the ride-hailing sector in India. Easy loan disbursement will be made possible by the integration, assisting fleets in maintaining peak performance. The partnership guarantees that fleet partners can effectively manage their money and grow their businesses more quickly by utilising SBI's vast financial services network and Uber's technologies.

Vinay M Tonse, MD (Retail Business & Operations), SBI, said, “At SBI, we are committed to offering innovative financial products that support businesses across India. Our partnership with Uber highlights our focus on providing tailored solutions to a diverse set of customers. By offering affordable financing solutions to Uber fleet partners, we are helping to fuel the growth of the ridesharing sector while also ensuring that fleet owners have access to the capital they need to succeed.”

Prabhjeet Singh, President, Uber India & South Asia, said, “This partnership reinforces Uber’s commitment to its fleet partners and aligns with our vision of fostering growth in India’s ride sharing ecosystem. By providing affordable loans through SBI’s customised offerings, we aim to create an enabling environment that provides fleet partners with the tools they need to scale effectively and contribute to the overall development of the industry.”

Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has attained a new wholesales milestone for its Innoa HyCross SUV.

Launched in November 2022, the Innova HyCross has crossed 100,000 unit sales milestone in India. The Innova HyCross is powered by the 5^th Generation self-charging strong hybrid electric system and comes with a 2.0-litre 4-cylinder petrol engine and an e-drive sequential shift delivering 137 kW (186 PS) of power.

The hybrid system the company claims enables the Innova HyCross to operate 60 percent of the time in electric (EV) mode. The 2.0-litre petrol engine paired with a direct shift CVT in select variants, delivers 129 kW (174 PS) of power.

Sabari Manohar, Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “We are thrilled to share that the Innova HyCross has achieved milestone of 100,000 units. Heartfelt thanks to our customers for their trust and support as we continue to drive unparalleled mobility experiences. The hybrid technology option in the Innova HyCross continues to impress customers with its exceptional performance and remarkable mileage. Beyond efficiency, the HyCross strikes an ideal balance of space and luxury, making it a practical choice tailored to a family’s diverse needs. Its superior handling, unparalleled comfort, and top-notch safety features further amplify its appeal. Combined with Toyota’s trusted service standards, the Innova HyCross delivers a holistic ownership experience that resonates deeply with its growing base of satisfied customers.”

AstaGuru will showcase some of the world’s most coveted vintage and classic cars at its upcoming ‘Classics of Motoring’ auction, which will take place from 20 to 22 November 2024.

The auction will offer an exclusive collection of rare and meticulously curated vintage cars, providing a unique opportunity for collectors and automotive enthusiasts to acquire iconic pieces of automotive history.

The auction will feature an impressive lineup of vehicles, including a 1934 Rolls-Royce 20/25 Limousine, a 1946 Singer Nine Roadster, a 1946 Bentley Mark VI, a 1947 Lincoln Continental V12 Convertible and a 1948 Jaguar Mark IV, among others. These stunning machines, each a testament to the engineering marvels of their era, promise to transport bidders back in time, celebrating the golden age of motoring.

A Growing Market in India

AstaGuru’s Vintage and Classic Car Specialist, Muzammil Kazi, shared his insights on the evolution of the vintage car market in India. “We did our first auction in 2018, and it was a surprising success,” Kazi noted. “At the time, these cars weren’t available online or marketed in the way they are now. You’d have to go to a dealer or connect with a seller directly, which made it hard to find these rare cars. But our first auction was a hit, with all lots selling successfully.”

The vintage car market in India, according to Kazi, is far from saturated. “The market is 100 percent growing. These cars were imported to India in limited quantities, and you wouldn’t find brands like Ford or General Motors here in the same way as abroad. Cars like the Fiat, Ambassador, or old Maruti SS80 were more common, but the rare vintage gems we are showcasing today are difficult to find.”

Kazi also emphasised that the scarcity of such cars means the market still has significant potential for growth. “The cars we have on display today are curated from various collectors across India, and it’s very rare to see them come together in one auction,” he explained.

Safeguarding Online Bidders

AstaGuru’s online auction platform also ensures that bidders are fully protected throughout the process. “We have a strong set of terms and conditions for the cars we sell,” Kazi explained. “We only auction cars with up-to-date paperwork and in proper running condition. Once a car is sold, we ensure the buyer receives it only after the seller submits a No Objection Certificate (NOC), making the transaction smooth and secure.”

Record-Breaking Bids

The auction has seen some impressive bids in the past. Kazi highlighted one of the highest bids to date: a Mercedes-Benz 111 230S, which was estimated at INR 2.1 million but eventually sold for INR 6.8 million. Another standout was a Rolls-Royce, which had an estimated value of INR 7-8 million but sold for a remarkable INR 18 million.

A Rare Opportunity for Collectors

For classic car enthusiasts and connoisseurs, the ‘Classics of Motoring’ auction represents an unmissable opportunity to acquire some of the rarest and most beautifully restored vehicles in the world. With its rich history and pedigree, each car in the auction is a testament to the artistry and engineering excellence that defined its era. Whether a seasoned collector or a newcomer to the world of vintage automobiles, this event promises a truly memorable experience for all involved.

As the vintage car market continues to grow in India, AstaGuru is setting the stage for an exciting future for collectors and car lovers alike. The ‘Classics of Motoring’ auction is expected to draw attention from around the world, offering a rare chance to own a piece of automotive history.

Tata Motors-owned British luxury car brand Jaguar has unveiled its new brand identity, which it says recaptures an ethos to Copy Nothing that traces its roots back to the words of its founder, Sir William Lyons. 

The new identify is based on Exuberant Modernism, a creative philosophy, which the company says underpins all aspects of the new Jaguar brand world. 

Professor Gerry McGovern OBE, Chief Creative Officer, Jaguar, said, “Jaguar has its roots in originality. Sir William Lyons, our founder, believed that ‘A Jaguar should be a copy of nothing’. Our vision for Jaguar today is informed by this philosophy.  New Jaguar is a brand built around Exuberant Modernism. It is imaginative, bold and artistic at every touchpoint. It is unique and fearless. This is a reimagining that recaptures the essence of Jaguar, returning it to the values that once made it so loved, but making it relevant for a contemporary audience. We are creating Jaguar for the future, restoring its status as a brand that enriches the lives of our clients and the Jaguar community.”

The four symbols of change – Device Mark, Strikethrough, Exuberant Colours and Makers Marks - each representing the future design philosophy for the luxury carmaker.

Device Mark celebrates modernism through the geometric form, symmetry and simplicity.

Strikethrough sees the linear graphic generate a unique presence and an immediately recognisable visual for Jaguar.

The Exuberant use of colours marks a cornerstone of Jaguar’s new brand identity.

Makers Mark consists of the newly reimagined Jaguar ‘leaper’, which the luxury brand said is part of its mark of provenance. 

On 2 December 2024, Jaguar will present its first global public installation under its new brand philosophy at the Miami Art Week.

Rawdon Glover, Managing Director, Jaguar, said, “To bring back such a globally renowned brand we had to be fearless. Jaguar was always at its best when challenging convention. That ethos is seen in our new brand identity today and will be further revealed over the coming months. This is a complete reset. Jaguar is transformed to reclaim its originality and inspire a new generation. I am excited for the world to finally see Jaguar.”