Mercedes Benz registers -39% YoY degrowth in Q1 2020!
With a little over 2.3k unit sales in Q1 2020; Mercedes Benz India recorded the lowest Q1 sales in the past 7 years!
Mercedes Benz sold 2,386 units in the first Quarter of CY 2020 (Jan’20-Mar’20). It had sold 3,885 units in the same period last year and hence recorded a steep -39% decline YoY. The ongoing slowdown in the Indian market was aggravated even further with the Covid19 outbreak. Similar to other OEMs; even Mercedes Benz had to to shut down its plant post 23 March when the lockdown was announced and the business went dry almost in the last 10 days of Mar’20. The drop in volumes in Q1 is going to be followed with a even steeper decline in Q2 as entire Apr’20 is bound to be washed away by the continued lockdown.
Mercedes Benz was one of the first automakers to upgrade its entire portfolio to BS6. It was also the first automaker to launch a BS6 compliant diesel vehicle too. The GLE 300d SUV which was launched in Jan’20 has got good initial response and is commanding a waiting period of 3 months. The next launch from Mercedes’s stable is the New GLS.
In overall, it is going to be a tough phase ahead for both the OEMs and the dealer partners. It is yet to be seen if government takes any stern action to support the Indian auto industry.