Mercedes-Benz looking at smaller cities for growth

Mercedes-Benz is looking at smaller cities for growth and is in the process of studying locations to enable expansion into Tier 2 and Tier 3 cities.

“We need to stretch in Tier 2 and 3 cities. We have 83 dealerships in 40 cities, but deem this is not enough,” Roland Folger, MD & CEO, Mercedes Benz India, said.

Earlier this year, the German car maker had announced that it would set up 10 new dealerships during 2016 to take its total number to 92.

“We don’t, for example, need these in Mumbai, but we are looking at the potential in smaller cities,” he said.

Folger was speaking after the opening of Trinity Motors, the first new outlet of the year and the second one in Pune. This is also the first Mercedes Benz outlet in India to have an S-Lounge to showcase the flagship top end range of S-Class cars as well as the Mercedes Maybach.

The western region accounts for 37 per cent of the Mercedes-Benz total sales in India. “The opening of the second dealership in Pune (only five cities in India have more than one outlet) is based on the assumption that there is enough demand,” Folger said.

Located in Kalyaninagar, the new showroom is spread over a cumulative area of 48,500 sq. ft. that includes a 20-bay workshop in Wagholi and has involved a cumulative investment of Rs 14 crore.

Gaurav Ghatge, Executive Director, Trinity Motors, said that with Bharat Benz dealerships in Kolhapur, Sholapur and Pune, the company already has deep links with the Mercedes Benz brand.

“This is a natural progression, and we are now associated with the entire range of trucks, buses and cars,” he said.

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