Mercedes Benz India Targets Youth to Boost Electric Vehicle Sales
Mercedes Benz India Targets Youth to Boost Electric Vehicle Sales
Mercedes Benz is quite aware of the current situation of the Indian EV automotive market. Since this luxury brand is one top brands in India among the younger generation, Benz has decided to target a specific generation to boost its Electric vehicle sales in India. It has been Targeted at a consumer demographic of 28-33 years, and it expects many double-income families with an aggregate income of close to Rs 1 crore per annum to buy the new EQA. Let’s delve into the further details:
The new EQA SUV is designed to attract a young demographic, particularly those earning around Rs 1 crore per year. This group represents one of the youngest customer bases for Mercedes Benz India, which has always planned to use a top-down approach for its EV strategy. According to Santosh Iyer, the Managing Director of Mercedes Benz India, the company has seen a doubling of EV penetration to 5% over the past year, indicating increased acceptance and awareness among potential buyers.
To make the EQA more attractive, Mercedes Benz Financial Services offers an assured buyback of 67% after four years, encouraging buyers to upgrade to a new Mercedes vehicle. The EQA’s lower running costs also make it appealing to first-time buyers who are conscious of price and value. Through the Star Agility Finance package, EQA owners can save about Rs 80,000 per year compared to an equivalent internal combustion engine vehicle like the GLA, resulting in total savings of around Rs 2.4 lakhs over four years.
The EQA boasts a claimed range of 560 kilometers, with a quick 30-minute charge providing up to 400 kilometers. Mercedes Benz has partnered with the FICH App, which maps over 1,000 charging stations from various operators and offers an additional network of 150 stations. This extensive infrastructure aims to alleviate concerns about charging availability and range anxiety among potential EV buyers.
Mercedes Benz envisions the EQA not just as a primary vehicle for young buyers but also as a secondary or tertiary car for existing Mercedes owners. It is ideal for daily city errands, aligning with the lifestyle of affluent families who value sustainability and luxury.
Mercedes Benz India first entered the premium EV market in 2020 with the EQC and has since expanded its lineup to include the EQB and EQS. By the end of the year, the company plans to double its EV portfolio from three to six models. Despite stiff competition from BMW, which led the luxury EV market in India in 2023, Mercedes Benz saw a 130% growth in EV sales in the first quarter of 2024, selling 350 vehicles and achieving a 6% market penetration.
Iyer emphasized that the transition to zero-emission vehicles is a marathon, not a sprint. Mercedes Benz India is focused on addressing potential buyers' concerns about driving range and recharging times. The EQA 250+ variant, which offers a range of 560 kilometers on the WLTP cycle, caters to these needs, providing a longer range compared to the higher-powered EQA 350 variant. The EQA 250+ also comes equipped with features like a Burmester audio system, ambient lighting, a color head-up display (HUD), augmented reality (AR) navigation, and advanced driver assistance systems (ADAS), all of which are designed to appeal to younger buyers.
Despite a slowdown in the mainstream market, Mercedes Benz India is optimistic about achieving record sales and double-digit growth in 2024. The company has had a strong first half of the year and expects momentum to continue with nearly one new product launch each month. Iyer noted that although the second quarter was slower due to elections and seasonal factors, the interest in luxury cars remains high, and inquiry levels have not dropped.
In Summary, Mercedes Benz India is strategically targeting younger buyers to boost EV sales with its new EQA SUV. By offering financial incentives, impressive range, and extensive features, the company aims to make EV ownership more attractive. Despite challenges in the mainstream market, Mercedes Benz is confident in its ability to achieve record sales and sustain growth through continuous innovation and product launches. As the company doubles its EV portfolio and addresses customer concerns, it is well-positioned to lead the luxury EV market in India.
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