Mercedes-Benz India introduces second-gen GLC SUV at Rs 73.5 lakh, receives over 1,500 bookings in 15 days

Mercedes-Benz India, the country's largest luxury carmaker has received an order book of 1,500 units within a couple of weeks of opening bookings for its latest offering - the second-generation GLC SUV, which has been priced between Rs 73.5 lakh and Rs 74.5 lakh, ex-showroom India. The booking count until the SUV's launch on August 9, averages to an impressive 100 bookings per day.

This has swelled the luxury carmaker's order book in the range of 3,500 to 4,000 cars, amounting to almost Rs 3,000 crore of revenue, with almost a third or Rs 1,000 crore attributed to the all new GLC. 

The launch of the GLC SUV, which accounts for almost 15% of its total sales of the company, will bridge a critical product portfolio gap for the company and help the brand sustain a double-digit growth momentum for CY2023.

The new GLC will be the 14th model which will be assembled by Mercedes-Benz  India at its Chakan plant near Pune, where the company has invested about Rs 100 crore to produce this new model.

Santosh Iyer, MD, Mercedes-Benz India, said that the demand for the new GLC has been tremendous and the company has recorded its highest-ever bookings  recieved for any model, within a short span of two weeks. He further added that the GLC forms a part of the core luxury segment, which accounts for 60% of Mercedes-Benz India's total volumes.

"The launch of the new GLC will only make the core luxury segment even bigger, because this product was absent from the market for the last six months. You could feel the vacuum in that space. Therefore, it is quite strategic for us, and the product is quite big for us from a volume perspective."

"Having said that, while we are leading in terms of volumes and continue to do well and grow, our strategy is not just to chase number growth. It is more focused on the top-end strategies and customer experiences," added Iyer.  

To improve the desirability quotient, the company debuted the all new GLC at its new Mar 20X showroom, located in the heart of the NCR's business district in Gurugram. The carmaker claims that the showroom imbibes the new retail strategy of Mercedes-Benz  India by offering private consulting and immersive experience-driven consultation, with latest digital tools and trained sales personnel.

The company has already launched 6 models so far in CY2023, with a significant focus on the top-end vehicle (TEV) segment priced above Rs 1.5 crore. The launch of the second-generation GLC will reinforce the core segment - which accounts for 60% of Mercedes-Benz India's total sales. The company sells five key models - the GLB, GLE, C-Class, E-Class, and S-Class in the core luxury segment priced between Rs 60 lakh to Rs 1 crore. 

Iyer said that the company’s portfolio is fairly well balanced with both sedans and SUVs – with both body styles amounting to almost equal share of sales, with a slight skew in favour of SUVs, in line with the global market trend.

CY2023 poised for record luxury car sales

To sustain the excitement further in the festive season, the company has lined up another 4 new launches for the rest of CY2023. Mercedes-Benz India, on its part , sold over 8,500 cars in the first half of CY2023, registering a growth of 13% and Iyer expects to end the calendar with a double-digit growth, thereby hitting a new peak.

So far in the first half - January to June - approximately 20,000 luxury cars were sold in India, and with a significant chunk of sales likely to come up in the upcoming festive season, the market is likely to breach the previous high of 42,000 cars and hit a new peak.

Having witnessed various ups and downs in volumes and growth, Iyer said that the luxury car market over the last decade has grown at a compounded annual growth rate (CAGR) of 10-12%, and that he expects the double-digit rate of growth to continue in the coming decade too, before the country hits an inflection point in CY2030.

“There are two aspects to economic and cultural development. While the culture transformation is happening in India, it is a bit slower, there will be an inflection point when they both come together in a significant manner after 2030. It is then that one may see the growth accelerate,” he added.