Mercedes-Benz May Slip Its Sales Target Due To Demonetization in 2016

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Mercedezs-Benz
Mercedezs-Benz

In this burgeoning and most competitive world Mercedes-Benz has set a dignified platform that can not be denied.   Mercedes-Benz is one the prominent and notable automotive brand all over the world. Further, Mercedes spend around Rs 82 crore per day on research and development annually as a result of its big budget.The Automotive company has already invested 3 billion euros on most innovative, effective and efficient internal combustion engines and also it would be the first company introduce its novel engines from German auto giant in its model in the year 2017 combined with refreshed S-class cover. On the contrary, the whole automotive industry is spending on hybrid powertrains.

Mercedezs-Benz
Mercedes-Benz

According to the reports, Mercedes-Benz  India has earned 60% less turnout than anticipated as some businesspersons as its consumers have big future plans for this grand purchase on the grounds of  astute of the Indian government for the demonetization. On November 8, 2016, Prime minister Narendra Modi has removed the 500 rupee and 1,000 rupee notes from the flow of cash in the economy and created the scarcity of money as well control the purchasing power of the consumer i.e. to limits consumption and purchase in the country.

As per Roland Folger MD & CEO of Mercedes-Benz India, these thoughts and sentiments are just for the time being and would improvise shortly. Moreover, shortage of cash does not have any impact on sales as Mercedes-Benz is a luxury car business and does not rely on the cash transactions. Executive of MNC said that the Business undertaking had sold 13,502 luxury cars in 2015 as compared to 10,201 luxury cars sold in the year 2014 that was 32% more, though undertaking may not meet sales figures attained in 2015 and possibly miss the sales target of its biggest market in the current year in respect to restriction on the sale of high-powered diesel cars in the National Capital Region, (NCR) as a consequence of demonetization

Adding to the suspicion is uncertainty about demonetization move that has a very influential and powerful impact on the masses and according to all and sundry its a hostile approach taken by the government. However, it is too early to say anything as you never know the Christmas month might be remarkable even in our history. In addition to this, everything counts on how early the economy will bounce back to normal by eliminating the shortage of cash in our country. Undoubtedly, there are insecurities in the luxury car business and a little disturbance with the undertaking, let’s adopt the positive aspect and eliminate the negative one to run the business at a normal pace to have more revenue or surplus.

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