Mercedes-Benz in India has claimed two-thirds of its cars are currently either financed or leased.
Despite a preference for ownership over leasing in India, where asset finance penetration is estimated to be as low as 2%, Eberhard H Kern, managing director and chief executive of Mercedes in India, said the trend for finance was improving.
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Similarly, Volkswagen estimated its penetration rate in China, another economic powerhouse without a tradition of financing vehicles, to be up to 16% in March, compared to the 70% levels seen in European markets.
Mercedes-Benz sold 7,138 units in 2012 and currently operates a 57-site dealership network in 32 cities in India with plans to open another 10 outlets before the end of 2013. Kern estimated sales in Delhi and Mumbai accounted for 45% of brand sales in India, 40% of Mercedes models sold were the E-Class and 5% of its leasing was in the corporate sector.
Daimler, parent group to Mercedes-Benz, has spoken before of its ambitions in global retail finance, estimating its worldwide penetration rate to be over 40% in April 2012. Later that year, the group announced plans to catch up with global volume sales of fellow prestige brands BMW and Audi.
richard.brown@timetric.com
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