FILE PHOTO: Frankfurt hosts the international Motor Show (IAA)
NEW DELHI: Mercedes Benz expects double-digit sales growth in India this year, despite concerns that a weaker rupee could increase car prices, the head of its local unit said in an interview.
The German luxury carmaker’s sales in India rose 41% last year to 15,822 cars, its highest ever in the country, and it has an order backlog of around 6,000 vehicles, Santosh Iyer, managing director for Mercedes-Benz India, told Reuters.
One risk to the growth of India’s luxury car market is a weakening Indian currency, which could force Mercedes to increase domestic prices as imported components get pricier, he said.
The rupee fell 10% against the dollar in 2022, its steepest drop since 2013, making it the one of the worst performing Asian currencies.
“One of the biggest risks we see for us is the exchange rate. With the rupee weakening a bit more, that will lead us to more price increases.
“So that’s some headwind we see when it comes to the growth potential. But we are starting the year with a very healthy order bank,” said Iyer. — Reuters
