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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Citroen India, in partnership with its dealership La Maison Nanavati, has completed the handover of 51 Citroen C3 CNG vehicles to the Luthra Group. The ceremony took place at the Luthra Group’s headquarters in Surat.

The delivery is part of Citroen's strategy to expand its presence in tier-II and tier-III markets by providing mobility solutions to businesses and individuals.

The Citroen C3 CNG is designed for high-usage environments and daily commutes. The model includes several features tailored for the Indian market, integration of a factory-fitted CNG kit to manage running costs. A suspension system tuned specifically for local road conditions. Provisions for cabin space and air-conditioning systems designed for high-ambient temperatures.

The handover to Luthra Group represents the brand's focus on cost-efficient transportation. By targeting the regional business sector, Citroen India aims to strengthen its footprint in Gujarat and the broader Indian mobility market.

The C3 CNG is positioned as a solution for users requiring reliability and low operating expenses without compromising on ride comfort.

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Maruti Suzuki India has signed a Memorandum of Understanding (MoU) with Uttar Pradesh Gramin Bank, a regional rural bank, for vehicle retail financing partnership on new cars, pre-owned vehicles and commercial vehicles.

This collaboration marks the 50th retail finance partner for Maruti Suzuki India. The partnership is intended to use the bank’s network to provide credit options to a range of customer profiles, particularly in rural and semi-urban regions.

The partnership aims to increase the accessibility of Maruti Suzuki products through, tailored finance schemes designed for rural and regional customers.

Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India, said, “Our partnership with Uttar Pradesh Gramin Bank marks a significant milestone as we onboard our 50th retail finance partner. This reinforces our commitment to making car ownership simpler and more affordable for customers across India. By expanding our reach through this strategic alliance, we aim to empower buyers with competitive, customer-friendly financing solutions that enhance the overall purchase experience. We remain focused on delivering seamless, tailored finance options, and this collaboration strengthens our vision of providing the Joy of Mobility to aspiring Indian consumers.”

Yadav S. Thakur, Chairman, Uttar Pradesh Gramin Bank, said, “At Uttar Pradesh Gramin Bank, empowering customer aspirations is at the heart of everything we do. Our partnership with Maruti Suzuki, a leader in the automotive industry, is a strategic step towards enhancing our service offerings and delivering greater value to our customers. This collaboration aligns with our 'Customer-First' mission, enabling us to provide accessible and affordable vehicle financing solutions. We look forward to helping more individuals and families across the country realise their dream of owning a Maruti Suzuki vehicle.”

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Kia India has started production of the latest generation Seltos at its manufacturing facility in Anantapur. The company has confirmed that prices for the mid-SUV will be announced on 2 January 2026.

The Anantapur plant, established in 2019, serves as a hub for both the Indian domestic market and international exports. The facility uses automation and a local workforce to manufacture the Seltos, which was the first model produced by the company in India.

The new model is built on Kia’s K3 platform, which has been engineered to increase structural rigidity and improve suspension damping. The vehicle has grown in size compared to its predecessor to increase cabin space and stability. It has 4,460 mm of length, 1,830 mm of width and a wheelbase of 2,690 mm.  

The exterior design follows the ‘Opposites United’ philosophy, featuring a ‘Digital Tiger Face,’ LED projection headlamps, and alloy wheels with neon brake callipers.

The vehicle integrates several digital interfaces and driver assistance systems. It features an upgraded Kia Connect 2.0 suite with over-the-air (OTA) software updates and a proximity unlock function.

In terms of safety, it gets 24 features as standard, while ADAS Level 2 offers 21 autonomous features to assist the driver. The Kia Seltos SUV comes with three engine options – 1.5-litre Petrol producing 115 PS of power and 144 Nm of torque, 1.5 T-GDI Petrol producing 160 PS of power and 253 Nm of torque and a 1.5-litre diesel engine producing 116 PS of power and 250 Nm of torque.

Transmission choices include a 6-speed manual (6MT), intelligent manual (6iMT), IVT, 7-speed dual-clutch (7DCT) and a 6-speed automatic (6AT). The model will be sold in four trims – HTE, HTK, HTX and GTX – with additional option variants and an X-Line styling pack.

Gwanggu Lee, Managing Director & CEO, Kia India, said, “The roll-out of the All-New Kia Seltos marks a proud milestone for Kia India. Seltos has long set benchmarks in the mid-SUV segment, and this new generation represents a bigger, bolder, and more progressive evolution shaped by insights from Indian customers. With production now underway at our Anantapur facility, our teams are fully geared to ensure customers can take delivery of their all-new Seltos without long waiting periods. We are confident the all-new Seltos will once again redefine expectations in the segment and strengthen Kia’s leadership in India."

“The new Seltos looks fantastic. The Anantapur team, together with our supplier partners, have done an outstanding job in delivering our customers a great looking, significantly bigger, technologically progressive and safe vehicle with impressive functionality and connectivity,” he said.

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Stellantis-owned French automotive brand Citroen India has inaugurated its 126th point of sales and service (POS&S) facility in Chennai, continuing the expansion of its network under the ‘Citroen 2.0 – Shift Into The New’ strategy.

The new 3S (Sales, Service and Spares) facility is located at Chitlapakkam, near Chrompet. It is an extension of the partnership with VTK Automobiles, which now operates five Citroen touchpoints in the city. The outlet functions as a ‘Stellantis Brand House,’ allowing customers to access both Citroen and Jeep brands within a single space.

Since the announcement of the Citroen 2.0 strategy, the brand has increased its network by 48.6 percent. Over the last six months, the company added 43 points of sale through its network expansion programmes. Citroen expects to reach a total of 135 outlets by the end of the year, with further operations planned for the north, west, and east of India.

The strategy focuses on several pillars – deepening the domestic supply chain for India-centric products. Expanding the dealer footprint into Tier 2 and Tier 3 locations. Using digital tools and unified spaces for sales and aftersales services.

Shailesh Hazela, CEO and Managing Director, Stellantis India, said, “The expansion of Stellantis network further with VTK dealership in Chennai marks another important step in Citroen and Jeep India’s network growth strategy. Chennai is a key market for us, and this upgraded facility will enable us to serve our customers better with a seamless sales and ownership experience. Aligned with our Citroen 2.0 strategy, we remain committed to strengthening our dealer partnerships and building a robust, customer-centric network across the country.”

Kumar Priyesh, Director Automotive Brands, Stellantis India, said, “We have grown our network by almost 48.6 percent since we announced the Citroen 2.0 strategy and have been able to expand our operations in different parts of country: adding tier 2/3 locations while further strengthening in Metro/ Tier 1 cities. Through project Visitar, Network Expansion Program and expansion in new geographies we added over 43 POS in the last 6 months and are already in advanced stages to start additional operations in North, West and Eastern parts of the country and expected to close the year with 135 POS for Citroen.”

Sree Venkata Teja Kethineni, Dealer Principal, VTK Automobiles, said, “We’re happy to partner to this pivotal shift in automotive retail, proudly representing Jeep and Citroen. Our dual-brand strategy empowers us to deliver a truly elevated and distinctive experience – whether customers seek rugged performance or refined sophistication. With passion, professionalism and personalised care at the core, our team is committed to exceeding expectations and upholding the global standards these iconic brands represent.”

The facility includes a service centre equipped with diagnostics and digital tools. Staff members are trained across both Jeep and Citroen product lines to provide technical support and product information.

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