[sidindica]

source: Kolhapur businessmen to buy 180 Mercedes at one go! - Rediff.com Business

If businessmen from Aurangabad, in the backward Marathwada region of Maharashtra, can book 113 Mercedes Benz cars and 101 BMW sedans at one go, rich and influential from Kolhapur and Sangli, the prosperous belt of western Maharashtra known more for its sugar barons and the clout they enjoy in the state's politics, can go a step further. Professionals, including doctors, engineers, farmers and industrialists, from various sections of Kolhapur, Sangli and Belgaum in Karnataka have made primary bookings for 180 Mercedes Benz cars from a Pune dealer, B U Bhandari, who was also responsible for the Aurangabad deal.
"Yes, it is true that we have done primary bookings for 180 Mercedes Benzs from B U Bhandari, a dealer in Pune," said Anand Mane, president of Kolhapur Chamber of Commerce. Mane is also included in the list of buyers.

However, he said that the actual bookings will take place on December 18 and 19.
"That is because there are so many models to choose from with different price ranges and features. The company is holding an exhibition on December 18 and 19 in Kolhapur when actual bookings will take place."
Interestingly, Kolhapur already boasts of a meaty 110 Mercedes Benzs and an addition of 180 more will take the number close to 300.
"It is not something new for us," Mane said.
However, buying en masse will only help these people get good deals, he feels.

Here are some of the freebies and discounts that this group of 180 people from Kolhapur Chamber of Commerce, Shiroli and Gokul Shirgaon Manufacturers' Association are discussing with Mercedes Benz India, Bhandari Motors and four banks that include government and private banks.
Among other things, the demands of this group from the makers of Mercedes cars are:

• 10 per cent or more discounts on the price front. That translates into savings of Rs 4 lakh (Rs 400,000) to Rs 10 lakh (Rs 1 million), depending on the model one wants to buy.
• Setting up of a service centre in Kolhapur as it will not be feasible for as many people to service their vehicles in faraway locations like Pune.
• While a discount of 10 to 20 per cent in vehicle insurance is the norm, these bulk buyers are trying for a discount of 50 per cent on vehicle insurance.
• Increase in the free service period from one year to three years.
• Negotiating with banks to get car loans at an interest rate of 6 per cent. They hope to get it around 7.5 per cent to 8 per cent when the ongoing rate is 10 per cent to 11 per cent.

"We are demanding a few things from the dealer and the company. For this, Aurangabad has already set a precedent. Although our demands are a bit more, we are in talks with the dealer in Pune as well as the company and hope to get most of them satisfied."
Depending on the model and add-on features the price of a Mercedes Benz could range from Rs 26 lakh (Rs 2.6 million) to Rs 2 crore (Rs 20 million).
"While 80 per cent of the buyers are likely to purchase a vehicle ranging between Rs 26 lakh and 50 lakh (Rs 5 million), the maximum amount that a few of us can splurge on the car will not be more than Rs 1 crore (Rs 10 million)," Mane said.

And if all goes well, the city of Kolhapur is expecting deliveries of their brand new possessions by March 2011.
Interestingly, 80 per cent of the buyers -- a majority of them Maharashtrians -- are from Kolhapur and remaining 20 per cent equally split between Sangli and Belgaum.

[shankar.balan]

All I can say is WOW!!!

Tier 2 India is BOOMING it appears!!
Perhaps it is the right time to buzz off from the cities and go back to the quieter places to do business and live in a more gracious manner!!

Fantastic indeed!!!

Wonder when the Tier 2 cities in the South of India will follow suit!!

Originally Posted by sidindica

source: Kolhapur businessmen to buy 180 Mercedes at one go! - Rediff.com Business

[Cesc]

I thought the Merc CEO for India said there will be no more repeats of Aurangabad type discounts after delivering the batch of cars there. Looks like Kolhapur folks will score an even sweeter deal. But my O my 180 is a big big number for a place like Kolhapur.

[druva]

Originally Posted by shankar.balan

All I can say is WOW!!!

...
Wonder when the Tier 2 cities in the South of India will follow suit!!

+1. Coimbatore should not be far off

[hallik9]

First Aurangabad,Pune and now Kolhapur.
Wow,Semi Metro cities in MH have evolved.
What was good to see though was the presence of the Merc CEO when handing over the cars to the owners back in Aurangabad(or was it Pune?)

Wish we have more such developments across other cities in India

[Nilesh5417]

I'm bored of these news now. Its like an ego-epidemic across cities in Maharashtra. Anyways. Kolhapur was actually at one time the Merc capital of Maharashtra.

[the VTEC guy]

Originally Posted by Cesc

I thought the Merc CEO for India said there will be no more repeats of Aurangabad type discounts after delivering the batch of cars there. Looks like Kolhapur folks will score an even sweeter deal. But my O my 180 is a big big number for a place like Kolhapur.

Well Kolhapur has been known for rich farmers and politicians since long. And long back prior to Gurgaon/Ludhiana took over the honour of highest number of per capita Mercedes was with Kolhapur.

[ghodlur]

Why not get the Merc guys on TBHP? They may share their booking and delivery experience.

Just thinking on those lines. Why not BHPians in cities (any no tier specific) group together for a bulk discount. Is there any way Mods where the buyer can express his desire to book a car.?

[shankar.balan]

yes but the Southern chaps are in general a lot more low-key in their acquisition sprees.

Originally Posted by druva

+1. Coimbatore should not be far off

[PlatzdaTurbo]

Oh boy...ok then. Nagpur, Solapur, Nasik are you listening ? Why not join them ? When should we expect another 101 or maybe even more ~ 110/120 Beemer , Audi orders from your cities in response to the Merc elephantine order #2 ?

[Figopian]

No surprizes here! Kolhapur is known for its car frenzy people. If I remember correctly, the first rolls royce in India (by an indian) was booked by the then king of Kolhapur. There are a lot of Mecs already in Kolhapur and I have seen Pajero ads in Kolhapur which I never saw even in Pune!!

[rjalihal]

Holy Cow! (Actually i wanted to swear, but then remembered the rules!). BELGAUM is featured there? Dang, my home town is really waking up big time. I remember going to Miraj and Kolhapur as a young kid visiting family and relatives. Now that same belt is prospering so much! What am I doing in Bangalore anyways! Good to know this. I hope the roads in Belgaum get tarred soon, cause it is a mess.

Cheers!
Rohan

[kalpeshc]

I am not aware of the road situation in the interior Maharashtra but one of the things that these guys should have been requesting instead of other discounts is better roads !! Just imagine MB building and maintaining roads so that these people can actually enjoy driving their Mercs !

Just a funny thought.

[Figopian]

Well... roads in Kolhapur at the moment are in complete mess. In fact there are no roads and it feels scary driving in Kolhapur. Just heard from my friends that the construction of roads has just begun after the pipe work completed. Hopefully, when these guys get their mercs, the roads will be ready for them!!

[sindabad.sailor]

Kolhapur indeed was a Merc capital of India not too long ago.

The city people have immense craze for cars. Forget abt cars, even auto rickshawalas w'd do something unique with interiors.

Last year i read somewhere that this is the second highest per capita income city in India, first being Ludhiana. You can see the prosperity everywhere in the town. even the showrooms of Jacquar/Kohler/Hans Grohe etc premium bathroom fitting makers are making crazy sales here.
First it is cash crop rich sugar belt. Tax free agricultural incomes and ever increasing sugarcane pricing has helped a lot.
Second is the foundry industry and in general entrpreneuring environment.
Third is that it is an emerging medical hub - very very wealthy club of doctors who made wealth by being creative and innovative who offer treatments that are not available even in cities like Mumbai.
Fourth - almost every household is into some part time business, at least insurance agency augmenting salary incomes.
Fifth - The famous historically rich Marwadi (no offence meant) community rising from core Jwellery making business to almost all walk of business life.

Prior rapid elctrification of India, this city was a major oil engine manufacturer in India. The then king of kolhapur was not only first king to buy expensive cars but was pioneer in industrialising the state. he even built a private dam and a power plant for the state then. Foresighted rulers bring fortunes to citizens
So no wonder 180 Mercs booked the same day.

Rgds.