Merc may lose top spot to BMW in India

The arch rivals in car industry Mercedes and BMW are in keen tussle to retain the top spot and in the given conditions, Mercedes may lose ending the battle. If it happens so, then it will be the first ever debacle for Mercedes in India. Last year Mercedes tasted a good time with selling of 537 more units(3445) than BMW(2908)but this year facing many hassles and hiccups, the company is facing a grave threat from BMW. More serious, Mercedes is in a position to face a fall in its own rate. BMW, for its part, had a good niche during the first 8 months in 2009, by selling 2305 units against BMW’s 1876units. Mercedes is left with technical flaws in the form of E-class variant (an outgoing model) and with just single variant in the new E-class petrol the company’s sales this year is in a cloud. However, the company is going ahead with its new version of E-class in 2010. The existing variant of E-class is a knocked down unit and is assembled in Pune and the assembled car accounts for 30% of the total sales of the company in India.

The last lot of the earlier model left out the unit as the new variant started the production a month ago. Mercedes will face further dip with the handicap of diesel variant and the simultaneous decrease in petrol variant. Moreover, the recent entrant, all new E-class is designed in the top-end segment with a 3.5 lit, V6 petrol engine @Rs46.97lakh. BMW has an alarming business, aiming to increase the sales to 3000 units to surpass its own sales, as is evident from the current growth of 13-15%. The 5series, 7series and SUV ranges from BMW show a high stint in sales with double digits. With this prospect, the company is intending to launch its Z4 convertible sedan @Rs50-60 lakhs.

Mercedes is shielding with its new E-class to vie against BMW next year. With barely three months left this year, the company senses that by having just 650 kits of E-class (old) for the bygone nine months and with just one diesel variant, it would be hardly possible to fetch as many number as targeted. The target is either reserved or carried over to 2010, which in the company’s version, would be a blockbuster year.

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