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Old 11th November 2006, 05:40   #1
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The Kolkata telegraph stated on its online version for Saturday, November 11, 2006 that Mercedes is launcing its new E-class in Kolkata, a solid 2 months after Mumbai and Delhi.

http://telegraphindia.com/1061111/as...ry_6984930.asp

What really got me into the article is how sales have boosted by 40% in Kolkata. I did the math, and needless to say, I was quite perplexed by the results.

Whoever did the interview reported that they sold 825 units in 2005. Is that the total sales of E class models or all models? I am assuming based on the report that its for the E class only. Also are the sales figures for India or Kolkata and the eastern region? If I assume that its all India, that means E class cars sold in Kolkata in the whole of 2005 has been only 41. (41 Mercs sold in one year - good or bad?) The article says that sales jumped by 40% - that means sales in 2004 were only 29 cars.

Doesnt that seem too low of selling value (in terms of units sold)for Mercs in a major metro city. And 10 million E class models sold all over the world!!!! Thats a lot of E class mercs rolling on the roads. Probably....., but I dont know how he can validate this fact. As far as the Indian market goes the sales figures dont make any sense to me. I bet auto dealers in Mumbai or Delhi sell 30-40 E class mercs in 2-3 months, let alone a year.

Any comments on this article?? I am sure there are people in this forum who can shed light on this article
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Old 11th November 2006, 07:53   #2
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The similar or same E models in US goes for 21-25 lacs (converted from USD). So this additional 14-20 lacs is excise tax or what?
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Old 11th November 2006, 08:10   #3
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Quote:
Originally Posted by Master530i
The similar or same E models in US goes for 21-25 lacs (converted from USD). So this additional 14-20 lacs is excise tax or what?
That's nothing new in India. E-Class comes as Semi Knocked Down. So there's import duty tagged on. For a Completely Built Unit like S-Class/ M-Class/CLK/SL/CLS..costs are much higher.

This E-Class is a face lift.

Honda CRV (CBU) costing 16 lakh+ in India. My friend bought the same for 7.75 lakh in Nairobi..two years ago.
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Old 11th November 2006, 11:15   #4
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Quote:
Originally Posted by Master530i
The similar or same E models in US goes for 21-25 lacs (converted from USD). So this additional 14-20 lacs is excise tax or what?
Excise duties cross 110% mark sometime, so if a 10L car costs 21L in India, consider it no-big-deal!
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Old 11th November 2006, 15:23   #5
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825 would be for the entire country. I think that figure sounds about right. There is no doubt that the Indian buyer finds the most value in the E Class (of the Merc range). It outsells the C and the S combined.
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Old 11th November 2006, 17:54   #6
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Quote:
Originally Posted by no_fear
Whoever did the interview reported that they sold 825 units in 2005. Is that the total sales of E class models or all models? I am assuming based on the report that its for the E class only. Also are the sales figures for India or Kolkata and the eastern region?
Excerpt from the article:

“This is our most popular model, having sold 10 million the world over. In India, we sold 676 units in 2003, that rose to 825 units in 2005. We are buoyant about the 2006 figures as well,” said Aulbur.

It clearly answers both of your questions, 825 is the figure for just E-Class and for entire India. In any case 825 E-Class for Kolkata would be too much. Among the 825, at least 65-70% must have been bought in Delhi, Mumbai only.
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Old 11th November 2006, 18:51   #7
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Chandigarh, apparently, is the biggest market for Mercs.
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Old 11th November 2006, 20:03   #8
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Quote:
Originally Posted by GTO
Chandigarh, apparently, is the biggest market for Mercs.
Definitely GTO! My God, how did I forget Haryana farmers, they buy Mercs like anything. Gujarat too must have a good domination in Mercs' sales.
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Old 11th November 2006, 20:33   #9
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Quote:
Originally Posted by yeis
Definitely GTO! My God, how did I forget Haryana farmers, they buy Mercs like anything. Gujarat too must have a good domination in Mercs' sales.
If Chandigarh is the biggest Merc market, that must be the place to get a 2nd hand Merc from at the cheapest price (wrt condn)?
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Old 13th November 2006, 11:58   #10
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Quote:
Originally Posted by 1100D
If Chandigarh is the biggest Merc market, that must be the place to get a 2nd hand Merc from at the cheapest price (wrt condn)?
Well, I doubt it. Used cars are cheaper in places where people buy cars for fun and they believe in exchanging their existing cars very frequently. This way used cars come in market-place in excess and prices fall. Haryana farmers buy Mercs for status, show-off. They keep their cars for longer hence I doubt there will be many Mercs for sale there, therefore prices of used Mercs there won't be much cheaper (leave out less prices due to the registration charges etc). I don't say they cannot afford a new Merc every alternate year, maybe they can but I guess they don't usually do it unlike a Delhi or Mumbai industrialist!
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Old 13th November 2006, 12:05   #11
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Quote:
Originally Posted by yeis
Well, I doubt it. Used cars are cheaper in places where people buy cars for fun and they believe in exchanging their existing cars very frequently. This way used cars come in market-place in excess and prices fall. Haryana farmers buy Mercs for status, show-off. They keep their cars for longer hence I doubt there will be many Mercs for sale there, therefore prices of used Mercs there won't be much cheaper (leave out less prices due to the registration charges etc). I don't say they cannot afford a new Merc every alternate year, maybe they can but I guess they don't usually do it unlike a Delhi or Mumbai industrialist!

All I can say is that You need to visit Chandigarh sometime soon You would change your view in no time!

IMHO, it should be given teh tag of "conspicuous consumption capital of India"
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Old 13th November 2006, 12:22   #12
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Quote:
Originally Posted by GTO
Chandigarh, apparently, is the biggest market for Mercs.
Its ludhiana actually, and is unofficially called the merc capital of India. Many Mercs in Ludhiana used to carry chd number plates.
Reason, many rich people have a house in chd, and taxes etc., were lower in UT.
Ludhiana boasts couple of maybachs too!
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Old 13th November 2006, 12:34   #13
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Quote:
Originally Posted by yeis
Well, I doubt it. Used cars are cheaper in places where people buy cars for fun and they believe in exchanging their existing cars very frequently. This way used cars come in market-place in excess and prices fall. Haryana farmers buy Mercs for status, show-off. They keep their cars for longer hence I doubt there will be many Mercs for sale there, therefore prices of used Mercs there won't be much cheaper (leave out less prices due to the registration charges etc). I don't say they cannot afford a new Merc every alternate year, maybe they can but I guess they don't usually do it unlike a Delhi or Mumbai industrialist!
this haryana farmer argument is misinformation.
First of all Haryana farmers(regular ones) are not rich enough. Punjab farmers fare slightly better, but not in the merc range.
So who are these rural owners. They are big landlords who have diversified into orchards/orchids/cash crops etc., These are the new age farmers and form a small percentage of the general farming population. But for a car like merc, even a small population is enough to cause sales figures jumps.
But these are also not the biggest consumers. The biggest ones are old school industrialists in Ludhiana and Jalandhar industrial belt, the notable among them are
Proline, octave, Atlas, Hero(Munjals), Oswals(Monte carlo, Pringle etc.,). Infact Oswals are 5(or 6) brothers, each of them a multi multi millionare in their own right.
Then you have these unknown machine tool, Hoisery and sports good makers, who mostly deal in exports and you dont get to see their products in Indian market.

There was one time when the Luxury car market in Punjab crashed due to the influx of large amount of second hand imported cars in market. Reason : Crash of East Block and Soviet union in the early nineties. Europre and US trade had not picked up and many of these super rich industrialists literally lost everything as their primary markets went kaput.

But soon they picked up again, though some could never regain their lost glory.
As the scene stands now, industry is alive and kicking. Most of the mercs belong to industrialists and businessmen, mostly exporters, and not "Haryana Farmers".

Many of these businessmen have come from agricultural background and own farms and fields too, but you cant call them farmers, can you!
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Old 13th November 2006, 12:50   #14
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Infact up north people change their mercs every two years, if not the standard one year. And yes used mercs are the cheapest in chandigarh and ludhiana, a friend did just that!!

manson.
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Old 13th November 2006, 12:59   #15
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Quote:
Originally Posted by tsk1979
Many of these businessmen have come from agricultural background and own farms and fields too, but you cant call them farmers, can you!
No definitely I can't. Actually when I wrote farmers, I literally meant it. I read a report in India Today couple of years ago about Haryana farmers and their love for Mercedes (like a report telecasted on TV about Merc-lovers in Sholapur or some other Maharashtrian small city.). The report pictured a dark-blue Merc in front of a small house, kids were playing on a Khat and everything else looked like a simple village family except for that Merc in the aangan. I still stand by my comment that these farmers even if have Mercs in good numbers cannot dare selling them off every alternate year. I understand and accept what you talked about industries there. So as a whole we can have a conclusion that Mercs are much cheaper in Chandigarh and maybe Ludhiyana than any other part of India!
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