NEW DELHI: As markets open up and pandemic restrictions get lifted from various states, the demand for luxury cars remains at its peak. Mercedes-Benz, the country’s biggest luxury maker, said first quarter sales grew 26% to close the three months ending March 31, 2022, at 4,022 units against 3,193 units in the same period last year.
Mercedes said that the rebound in numbers has been strong, which has left the company with a delivery backlog of over 4,000 cars as shortage in supplies of semiconductors as well as issues with shipping logistics has impacted production schedules.
“The Q1 performance firmly reiterates customers’ clear preference for luxury experience… (and) with the highest order bank in our history, we are confident of continuing this growth momentum in the coming months,” Mercedes India MD Martin Schwenk said.
The company said that the E-Class sedan was its largest-selling model during the quarter, even as SUVs such as the GLC and the GLE had record bookings.
Santosh Iyer, VP (Sales & Marketing), said that while semiconductor shortages are gradually being tackled, logistics remains a big concern. “Availability of containers and ships is extremely tight. This is having an impact on production, though we are confident of ramping up output in the coming quarters.”
The broader car market has been on a roll post pandemic in terms of demand. But shortages of semiconductors and expensive inputs have impacted production at factories. Companies have also raised retail prices amidst expensive inputs and the increase in fuel costs will only make matters worse, analysts say.
