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)

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German luxury automotive brand BMW India has introduced the updated BMW 7 Series range, offering petrol and battery-electric powertrains across the lineup at prices starting at INR 19.5 million (ex-showroom).

The launch includes the BMW i7 M70 xDrive performance model, alongside the local production launch of the electric i7 at the BMW Group Plant in Chennai.

With local assembly of the i7 in Chennai, India becomes the second country after Germany to produce the electric model locally. The performance-focused i7 M70 xDrive will be imported into the country as a completely built-up unit (CBU) with deliveries across the 7 Series portfolio scheduled to begin in October 2026.

Furthermore, the company also introduced actor Ranveer Singh as the Brand Voice for BMW India at the launch.

Pricing for the petrol-powered 740 M Sport and all-electric i7 eDrive50 xDrive M Sport starts at INR 19.5 million, while the flagship i7 M70 xDrive is positioned at INR 26.5 million (all ex-showroom).

Hardeep Singh Brar, President and CEO of BMW Group India, said: "The new BMW 7 Series is more than our flagship sedan - it is our ultimate statement of modern luxury. It moves the leaders, changemakers and visionaries who are shaping tomorrow. Every detail has been crafted around one idea: those who have reached the pinnacle deserve an experience to match. The new 7 Series sets a benchmark, whether you choose to take the wheel or be driven. It is the new face of the BMW Luxury Class, while offering an early glimpse into technologies that will shape the Neue Klasse era. And with our Power of Choice philosophy, customers can choose from dynamic combustion engines to advanced electric mobility. Because true luxury is not about limiting choices - it is about expanding them. With the new 7, luxury doesn’t end with the drive; it begins there."

"The new BMW i7 M70 xDrive is the most powerful 7 Series ever created - where M performance meets first-class luxury, without compromise. It brings together exhilarating electric performance and the refinement expected from the pinnacle of the BMW portfolio. This is a car for someone who wants the thrill of taking the wheel and, equally, the luxury of being driven. Few cars can make the driver’s seat and the rear seat equally desirable. The i7 M70 does. It represents our belief that sustainability and performance are not competing choices. The future of luxury can be electric, exhilarating and extraordinary - all at once," added Brar.

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Kia India has opened pre-bookings for the Carens CNG, Carens Clavis CNG and Carnival Limousine Hybrid models across its authorised dealer network, expanding the company’s multi-powertrain portfolio in the Indian market.

The additions follow their display at Kia Inspiration Day and introduce alternative fuel options to the manufacturer's multi-purpose vehicle segment. The pricing for all three models is set to be announced at a later date.

Both the Carens CNG and Carens Clavis CNG are based on the G1.5 six-speed manual transmission platform and feature a factory-fitted CNG system with a 60-litre tank capacity. Technical modifications include engine calibration for CNG fuel, revised suspension setups, 16-inch wheels and 16-inch disc brakes. The driver interface incorporates a fuel change switch alongside a 4.2-inch colour TFT display with CNG distance-to-empty logic. Structural changes to the third-row seat-back frame have also been implemented to adjust the recline angle.

The CNG range will include Premium (O) trim for the Carens, while the Carens Clavis will be sold in HTE and HTE (O) trims for retail buyers.

For commercial and business-to-business fleet operations, Kia India has designated the M-Drive trim for the Carens CNG and the HTM trim for the Carens Clavis CNG.

The Carnival Limousine Hybrid introduces an electrified powertrain to the upper tier of the range, powered by a G1.6T HEV engine paired with a six-speed automatic transmission.

It is offered in the Limousine+ trim, which features 18-inch dual-tone aero alloy wheels, active air flaps and a virtual engine sound system. Interior equipment includes an air purifier with air quality index display, seat-back tables with integrated wireless charging, ambient lighting and leatherette door trims.

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Hyundai Motor India, one of the leading passenger vehicle manufacturers, has introduced the Lounge Edition variant across its Creta, Alcazar and Creta Electric SUVs. The special edition trim updates interior cabin equipment, rear seat entertainment and exterior trim styling across the three vehicle lines.

The primary update across all Lounge Edition models is an integrated 29.46 cm rear seat entertainment system featuring streaming platform compatibility, interactive gaming, an app store and smartphone mirroring, operating alongside an eight-speaker Bose audio system.

On the inside, it features silver interior accents, white ambient lighting, revised seat patterns and branded headrest cushions. Exterior changes feature black trim on the skid plates, side sills, roof rails, rear spoiler and side mirrors, paired with black alloy wheels and a golden bronze paint option.

The Creta Lounge Edition, built on the King trim level, is available with a 1.5-litre petrol engine mated to an intelligent variable transmission or a 1.5-litre diesel engine with an automatic gearbox, with prices starting at INR 1.92 million ex-showroom.

The Alcazar Lounge Edition is offered in a five-seat layout based on the Signature variant, powered by a 1.5-litre diesel engine with an automatic transmission and equipped with a voice-activated panoramic sunroof, priced from INR 2.18 million. The Creta Electric Lounge Edition, based on the Long Range Excellence trim, adds a dashcam and rear wireless charging pad, with prices starting at INR 2.43 million.

Amit Dhaundiyal, Head of Product Strategy and Planning, Hyundai Motor India, said, "At Hyundai, we continuously strive to create products and experiences that resonate with the evolving aspirations of our customers. Customers today seek experiences that go beyond mobility, and the new Lounge Edition has been designed with this evolving aspiration in mind. From lounge-inspired interiors, engaging digital entertainment and on-the-go gaming experiences powered by rear seat entertainment, to distinctive styling enhancements, every element has been thoughtfully crafted to transform every journey into a more comfortable, connected and rewarding experience. The Lounge Edition reflects Hyundai's commitment to delivering meaningful innovations and greater value across our SUV portfolio, and we are confident it will appeal to customers seeking a unique blend of luxury, comfort, entertainment and exclusivity in their everyday journeys."

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German automotive luxury brand Audi has unveiled the A2 e-tron electric compact model, which marks its most compact green offering, with prices starting EUR 38,200 in Germany.

Developed in Germany and produced at the manufacturer’s Ingolstadt facility, the EV has an energy consumption rating of 12.8 kWh per 100 kilometres under the WLTP test cycle.

The company will open bookings on 10 September, with European deliveries scheduled to begin in December.

The A2 e-tron is offered in four power outputs ranging from 125 kW and 350 Nm of torque in the base specification to 240 kW and 545 Nm in the top variant, paired with rear-wheel drive and permanently excited synchronous motors. Depending on the output, battery capacities are available in 52 kWh, 61 kWh, or 84 kWh gross options, achieving a maximum driving range of up to 646 kilometres under WLTP conditions.

The chassis design incorporates a drag coefficient of 0.24, utilising active cooling air intakes, aero wheels and wheel-arch gap reducers. Bidirectional charging capabilities support Vehicle-to-Load (V2L) external device powering and Vehicle-to-Home (V2H) energy transfer via compatible wall boxes.

On the inside, it features a curved MMI panoramic display housing a 12.3-inch instrument cluster and a 12.8-inch infotainment touchscreen with artificial intelligence assistant integration. Storage incorporates the Fidlock magnetic attachment system as standard equipment, alongside an optional 1.6-square-metre panoramic glass roof.

Audi states that around 300 components across the vehicle are constructed using recycled materials, including post-consumer plastics, aluminium and steel.

The EV assembly utilises 250 existing industrial robots and 1,200 reallocated production components at the Ingolstadt plant, using fixed-sequence manufacturing methods. Standard driver assistance systems include adaptive cruise control, emergency brake assist, evasive assist, attention assist and parking sensors with a rear-view camera.

Gernot Dollner, Chief Executive Officer, Audi, said, “The A2 e-tron is more than a new model: It represents Audi’s renewal. It shows how we are rethinking premium for Europe: using resources more intelligently without compromising on quality, technology, or customer experience. Developed for the needs of our European customers and built in Ingolstadt, it demonstrates our ambition to shape the future of premium mobility.”

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