Luxury carmakers pass on rate cut relief to buyers amid forex pain
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Kolkata: The recent RBI interest rate cut has provided the much-needed relief to luxury car buyers, offsetting some of the price hikes that manufacturers like Mercedes-Benz, BMW, Audi, JLR and Volvo have had to make in recent years.
Speaking to TOI on the occasion of the introduction of the brand's first hyper-personalisation in India on Thursday, Mercedes Benz India (MBI) managing director and CEO Santosh Iyer said the company's non-banking financial arm had passed on the benefits from the RBI repo rate cut to customers, offering relief and helped maintain relatively stable EMIs despite rising vehicle prices.
However, luxury carmakers, including MBI, are concerned over the exchange rate.
"The euro-rupee equation has been particularly challenging, moving from Rs 85-88 to nearly Rs 98 to the euro and forced us to implement three price hikes this year," said Iyer, adding that both CKD parts, which comprise 91% of the vehicles sold, and CBUs that make up the rest have been impacted.
Despite the headwinds, the luxury car market has shown resilience, growing by 7-8% in certain segments. Electric vehicles have been a bright spot, with luxury EV penetration increasing from 7% to 11%.
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"Mercedes Benz has outpaced the luxury electric segment growth, recording a 73% increase compared to the industry's 66%," Iyer noted.
Mercedes-Benz Research & Development India (MBRDI) managing director & CEO Manu Saale highlighted the facility's contribution to the company's evolution. "As the largest R&D centre for Mercedes outside Germany, we're integrating Indian expertise into global operations," Saale said.
MBRDI, that played a key role in shaping the India-inspired Collector's Edition of the AMG G 63, is focusing on two primary areas: digital twin technology where physical processes are digitised throughout the automotive development chain to accelerate development timelines while reducing costs; and developing customer-facing digital features, including infotainment systems, Advanced Driver Assistance Systems (ADAS) and electric vehicle charging solutions.
Kolkata: The recent RBI interest rate cut has provided the much-needed relief to luxury car buyers, offsetting some of the price hikes that manufacturers like Mercedes-Benz, BMW, Audi, JLR and Volvo have had to make in recent years.
Speaking to TOI on the occasion of the introduction of the brand's first hyper-personalisation in India on Thursday, Mercedes Benz India (MBI) managing director and CEO Santosh Iyer said the company's non-banking financial arm had passed on the benefits from the RBI repo rate cut to customers, offering relief and helped maintain relatively stable EMIs despite rising vehicle prices.
However, luxury carmakers, including MBI, are concerned over the exchange rate. "The euro-rupee equation has been particularly challenging, moving from Rs 85-88 to nearly Rs 98 to the euro and forced us to implement three price hikes this year," said Iyer, adding that both CKD parts, which comprise 91% of the vehicles sold, and CBUs that make up the rest have been impacted.
Despite the headwinds, the luxury car market has shown resilience, growing by 7-8% in certain segments.
Electric vehicles have been a bright spot, with luxury EV penetration increasing from 7% to 11%. "Mercedes Benz has outpaced the luxury electric segment growth, recording a 73% increase compared to the industry's 66%," Iyer noted.
Mercedes-Benz Research & Development India (MBRDI) managing director & CEO Manu Saale highlighted the facility's contribution to the company's evolution. "As the largest R&D centre for Mercedes outside Germany, we're integrating Indian expertise into global operations," Saale said.
MBRDI, that played a key role in shaping the India-inspired Collector's Edition of the AMG G 63, is focusing on two primary areas: digital twin technology where physical processes are digitised throughout the automotive development chain to accelerate development timelines while reducing costs; and developing customer-facing digital features, including infotainment systems, Advanced Driver Assistance Systems (ADAS) and electric vehicle charging solutions.
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