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Mercedes has recently come up with its Atelier Experience in cities like Chennai and Mumbai.Mercedes-Benz India has created an exclusive retail team to meet meet the growing needs of top-end buyers. “There are now two separate teams of which one is dedicated for super speciality customers,” Santosh IyerMD & CEO told ET Auto in a recent interview.
These top-end customers are much more aware of what they are buying in the luxury car space since they follow global trends closely and are highly demanding. When it comes to specific configurations of cars, the need of the hour is “really a good consultative approach” to say what works better for this category of customers.
According to Iyer, this kind of an in-depth interaction can only be done by highly trained and skilled people who love the brand. For now, this is a seven-member team at Mercedes that will cater to these exclusive customers while the remaining members will focus on the other end of the conventional retail spectrum.
When a particular buyer wants to configure a model for instance, the lead is transferred to the specialist team which does a consultative approach. Customer connect is now in place with the consultant but he can take the support of internal competencies when it comes to different segments of cars.
“They need to keep in touch with the customer. They also go for sales calls with the teams whenever needed so that they can meet these customers especially when many insist that they want to talk,’ he added.
Meeting specific needs
The specialist team also steps in when specific needs are to be taken care of. Their fundamental task is coordination or availability, order placements and also assisting in configuration. This can be complicated because some cars are completely built units and the customer has to be constantly updated if delivery schedules change because of shipping delays.
“The strength that we possess is that people in our teams have been with us for many years and they love the brand as well as the deep customer connect built over the years,” said Iyer. Dealers also participate in these conversations since the eventual objective is to support the customer.
The best part about the Mercedes Benz business card is that it can open any door and there is mutual respect. The levels of engagement are high and it is important that the person at our end needs to be knowledgeable about the product.Santosh Iyer
“The best part about the Mercedes Benz business card is that it can open any door and there is mutual respect. The levels of engagement are high and it is important that the person at our end needs to be knowledgeable about the product. Most customers are down-to-earth and when you connect at a common level of passion for the brand, everything else falls into place,” he continued.
Atelier Experience
Mercedes has recently come up with its Atelier Experience in cities like Chennai and Mumbai. Housed within these outlets are a host of materials right from the seat to the paint shade, trims and wooden panels where the customer at Atelier Experience can touch and feel this huge portfolio.
On the other side is a digital option where he/she can see the car being configured and see what it looks like. The touch and feel comes from the material and the price is also shown when the changes happen with configuration. Once this is done, a QR code is generated and the orders/commercial transactions can follow.
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“This needs competent people as well and we have a dedicated top end team which is trained separately and taking care of customers. There is a clear organisation not only at the retail side but on the wholesale (side) too,” explained Iyer.
The steering model for both are independent and all the regular Mercedes-Benz dealerships are being converted into this new luxury boutique format as well. Right now, the company’s dealer partners have committed investments of INR 450 crore in the next two years to completely modernise this physical infrastructure as well.
Mobile kits
“Till the time this comes up, we also have mobile kits and can be taken to the customer’s residence or office. He can choose from all options and does not have to come to the showroom. A lot of work is happening on customisation/personalisation with a dedicated team team at retail and wholesale,” said Iyer.
The company’s core belief is that Mercedes customers buy all cars and even the super speciality buyer will opt for the C and E class series. “We want to cross-pollinate and not have a wall separating them because the customer is the same for our entire range,” he added.
Based on customer profile, retail partners are selecting the format and we are uniquely privileged to have four brands which stretch the brand from INR 50 lakh to INR 8-10 crore.Santosh Iyer
There are carmakers like Maruti Suzuki which have exclusive outlets like Nexa and Arena to meet the needs of specific buyers but Mercedes does not think this is needed for its retail model. “We do not want to keep this kind of a divide because each of our customers demands high level of attention. You cannot have this separated since everyone wants his needs taken care of with a single point of contact,” said Iyer.
The Atelier Experience concept will be extended across India over time but the pace will be decided by the retailer who understands the pulse of the luxury car market. There is already a Maybach Lounge in Hyderabad which is a different concept as well as a G-Class lounge in New Delhi for the G-Wagon.
Choice of location
“Based on customer profile, retail partners are selecting the format and we are uniquely privileged to have four brands which stretch the brand from INR 50 lakh to INR 8-10 crore,” said Iyer. The profile of the end-customer decides the choice of location and explains why the retailer’s inputs become especially critical for the network strategy.
The recent launch of the AMG GT 63 and AMG GT 63 Pro also reflects the reality of a huge growing pool of enthusiasts that loves these driving machines. “We are reintroducing a host of track events and partnerships and continue to drive this segment forward with a whole lot of (early) adopters,” he said.
This car showcased at the event was a left-hand drive and the first right-hand drive version will come to India for early delivery to our customers here. “This is the reason why the LHD was being showcased. We will have to wait for the final demand outcome of course but the first set of cars will be delivered in the fourth quarter,” said Iyer.
When the company had launched the GT Black Series in 2022, there was a customer who bought it and drove 1,000 kilometres thanks to “our amazing roads”. He then took it to the Natrax track recently where there was a group of enthusiasts ready to zoom with different models.
“This is a tribe which is growing and as a brand we need to fulfil this aspiration. There is a clearly a growing segment of young and likeminded customers who go beyond age demographics and are the kind who love the track. They are also highly focused on the driving experience and we are happy to pioneer it and grow this further,” said Iyer.
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Building private racetracks
Some customers are also building their own private racetracks especially in Bengaluru and Coimbatore. It is now a growing community where people are intensely competitive and race among themselves. “This trend is growing and the best part about AMG today is that it can be driven on a normal road too because of the practicality it offers,” he added.
Hence, customers prefer this dual approach where the brand can be used just not for the track but for long weekend drives as well. According to Iyer, the strength of the Mercedes-Benz brand lies in its ability to stretch across categories and segments.
“You have a super luxury Maybach on one side and there is a performance AMG on the other. You have the G-class which is the pinnacle of SUVs along with the classical Mercedes Benz cars,” he said. The fact that all these powertrains are getting electrified too means customers now have a wider choice to pick from.
With the world now gripped in uncertainty with the wars in Europe and the Middle East as well as the tariff threat, Iyer said this was the new normal and to expect an era of consistency would be farfetched.
Forecasting challenges
“In earlier days, we used to have 10-20 year planning schedules which then shifted to five years planning and further down to three years now. Today, we only discuss one-year plans and the balance is tentative because it is becoming impossible to forecast,” he admitted.
In earlier days, we used to have 10-20 year planning schedules which then shifted to five years planning and further down to three years now. Today, we only discuss one-year plans and the balance is tentative because it is becoming impossible to forecast.Santosh Iyer
Beyond geopolitics, another worry for Mercedes’ India business is the exchange rate which is now INR 100 to an euro compared to INR 89 not-so-long ago. An erosion of nearly 13% can affect demand and pricing but the good news is the RBI has reduced rates which means EMIs can be shortened even while car prices are increasing.
“For the first time ever, we are doing three price increases in a year: January, June and now September. It may not stop because we still need to cover the INR 100 gap with the euro and are keeping our fingers crossed that things will cool down,” said Iyer.
The company’s electric portfolio has been doing well too and the period between January and May saw the total EV luxury space grow by 66% with Mercedes up by 73%. The EV penetration in this segment is 11% and Mercedes is categorical that it cannot compromise on the decarbonisation agenda. “Eventually it is up to the customer to decide the pace of transition,” signed off Iyer.
