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  • Essay / PEST Analysis: Case Study of Indian Auto Industry

    But this represents only one percent of the total Indian auto market, much lower than the ratio of its home country Germany at 15 percent percent and China at 4 percent. . But the growth potential gives Mercedes hope. “When the Indian automobile market doubles in the next five to six years to five million units and even if the share of luxury cars remains the same, we expect volumes to double from here,” says Mitra. Apart from newer and cheaper models, Mercedes is also exploring markets beyond the four metros towards cities that are said to be the "growth engines of the future". This explains his frequent roadshows to places such as Nellore, Jabalpur, Raipur and Karnal to gauge customer response. If demand is high, the company opens full-fledged dealerships. Several of its new outlets have been set up in Tier II areas following increased demand. The great Indian luxury car race will therefore be more difficult for players like Mercedes.