Mercedes Falls Behind BMW In India

mercedes falls behind bmw in india

If you hear a loud screeching noise coming from the Stuttgart area, that’ll probably be Dieter Zetsche berating his Asian management team. The Economic Times of India reported that the Mercedes-Benz marque has lost its leadership of the luxury car segment in India to BMW after nearly ten years on top. Daimler also posted a 10.43% decline in sales in India, as volume fell to 3,247 units (if that doesn’t seem like much, consider that Mercedes also trails BMW in China by about 60k units to about 90k). And just like that, out come the excuses: “We are behind BMW in 2009 because of limited availability of our E-Class car … I don’t want to focus on leadership. We want to have a profitable growth,” Mercedes Benz India Managing Director and CEO Wilfried Aulbur told reporters. “We see a very strong growth in 2009 and it will be a blockbuster year for us. We are very bullish and we expect, it will be a high double-digit growth.”

However, Daimler have not hit the (semi) nuclear option of offering discounts to move vehicles. Wilfried Aulbur said “The focus is on profitable growth, overall discount is detrimental and it is not our focus. Just to generate volume is not a good strategy.” Herr Aulbur also believes that lack of uniform taxes on cars are also to blame. Aulbur said, “We need fair treatment across the line that will lead to volume and it will lead to investment. I want uniform tax for all car.” . According to the Economic Times of India, small cars are subject to an 8% excise duty while bigger cars are levied at 20%, with an additional 15,000 Indian Rupees for cars having engines between 1500cc and 2000cc, while cars with engines bigger than 2000cc have to pay 20000 Indian Rupees. Is Herr Aulbur seriously suggesting that a Hyundai i10 should have the same tax as a Mercedes-Benz E class? With logic like that, no wonder they’re losing market share in India.

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  • BuzzDog BuzzDog on Jan 04, 2010

    I wish that Herr Zetsche would focus less on production volume, and more on the quality of build and materials. The Mercedes-Benzes I coveted as I was growing up had two key characteristics: Rock-solid quality and relative scarcity. Those things well justified their premium price.

  • Psarhjinian Psarhjinian on Jan 04, 2010

    Mercedes' problem is that they're not really able to understand that they make mistakes. All of the German marques do this, but Daimler is the worst: in their minds, everything they do is brilliant. On top of that, there's whole rafts of people who've built their careers enforcing this echo chamber. You can't fight this once it's taken hold, because any sign of reticence or admission of fault is seen as a critical weakness. You can never be wrong, because if you're wrong about one thing, you might be wrong about everything. So you make damn sure you're never seen as being wrong, and you build the house of cards ever higher until it collapses spectacularly. If this sounds a lot like the D3 in general, and the General in particular, it should.

  • Bwell Glad to see Crosley getting his due. Maybe not a genius but a great innovator. It's a shame that his company, which was hugely successful, just sort of faded away.One quibble - UC is not in College Hill but in Clifton, or more properly University Heights.
  • JMII "Some U.S. automakers have even begun considering bringing back discounts and incentives which were scrapped during the pandemic as supply constraints became a major issue."If sales drop off then this is the cure. Economics 101. Its about time people realized that paying over MSRP is stupid. I have held off purchasing a new vehicle for almost a full year now due to current conditions.My wife would love to have an EV but at current prices its just not happening. However the same is true for ICE vehicles. Vehicle prices are just too high overall right now and our current fleet continues to function perfectly so we see no reason to upgrade. I could careless what the Jone's down the street do or think.
  • TheEndlessEnigma More Ferrari "quality".
  • EBFlex This is not news. People don’t want autonomous vehicles just like they don’t want EVs. Both are unnecessary and dangerous.
  • Redapple2 I hope i fit in the new version.Wanted one since 1990