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Rediff.com  » Business » Luxury car makers eye smaller towns

Luxury car makers eye smaller towns

February 23, 2010 11:47 IST
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Gone are the days when luxury brands like Mercedes Benz, BMW and Audi were owned only by those dwelling in metros.

Consumers residing in Tier I and Tier II cities are also buying these luxury cars and the car makers are doing everything to tap this potential market.

The numbers are however very less but the carmakers are ready to provide uniqueness, value for money, competitive pricing, aggressive marketing and improved after-sales service.

A number of outlets are being planned in affluent but rural districts of the country too.

"There's significant momentum coming from the smaller cities and we expect 25-30 per cent of demand from such cities. We just set up a dealership in Surat, where in December alone we sold 11 cars," said Aulbur, Mercedes-Benz India chief executive officer and managing director.

He went on to add that the company has plans to spread its retail network to cities like Surat, Goa, Indore, Jalandhar and Bhubaneswar.

A significant shift has been seen in the customer profile too. The changing lifestyle and disposable income of young professionals is one of the major reasons for this shift.

Suhas Kadlaskar, director, corporate affairs and HR, Mercedes-Benz India said, "The average age of our customers has come down to 35-40 years from the earlier age of 50.

The introduction of the new C-Class last year and the new E-Class and M-Class this year has assisted Mercedes in achieving stronger volumes and reach out to a significantly lower age group of customers."

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