Mercedes has officially introduced its new brand, Mythos, to bring about some new highly exclusive collectible cars to the market. It is as if Mercedes itself is not a premium brand in the country. With the quick growing middle class and the increase of millionaires in India, the demand for exclusive cars is also growing. That is why, this new launch of the Mythos sub-brand has come at the right time. The brand will be similar to Ferrari’s Monza Line-up, where Ferrari gives out limited-edition custom-made cars on request from its customers.
The new brand is set to move Mercedes towards a luxurious future with an aim at building one-off cars in large volumes. This production model will require Mercedes to make a considerable investment in itself. Fortunately, Mercedes has the money to do so too.
Last year, even with the supply chain hit the production volume went down by 5% but the company had increased its revenue by 9%. Part of Mythos’ plan is to divert about 75% of its profit margins into the production of Mythos segment cars. So, on one hand, Mercedes Benz is investing in the future with three fourth of its profit today. At the same time, the company is also risking the money that could be spent on research and development of new and better designs into the production of an ultra-luxury line-up of cars.
Seeking Profit From Luxury
Mercedes-Benz is aiming to reach more profits through the luxury route, opposite to what most automakers do. Usually, the easiest way to making more profits in this sector is to make the best-selling models available in large numbers and with periodic upgrades. But, since Mercedes is a well-established luxury car maker, it will be easy for the company to transition into this phase.
Moreover, the company already has a lot of luxury brands up its sleeve, the AMG fleet, Maybach, S-Class and the recently introduced EQ series. All of them offer a wide variety of choices for its customers and Mercedes can play with variations among these brands too.
In a way, the company is emulating what fellow brands like Rolls Royce is doing in the automobile industry or to give a parallel what Apple is doing in the electronics and information technology products.
The Reorientation of Mercedes-Benz
For a long time now, Mercedes Benz has defined the epitome of luxury in the country. It can be attributed to the lack of competitors in this niche for the company in the early years of the development of Indian economy. However, with the influx of fellow brands and super cars inside the country, the scenario changed. Now, the German carmaker is looking to get back its almost lost position in the automobile industry.
Mercedes-Benz is reorienting its strategy and focus in the country and elsewhere. The company has redefined its portfolio with focus on three distinct categories – top-end luxury, core luxury and entry luxury.
The top-end luxury fleet will consist of all AMG and Maybach vehicles; the most expensive EQ-badged EVs; Mercedes S-Class, Mercedes GLS and Mercedes G-Class derivatives; and any & all limited-edition models. Part of this fleet’s move will be the introduction of the Maybach version of the new EQS SUV, which will be available in Mercedes Benz dealerships from 2023.
As for the Core luxury segments, the E-Class and the C-Class vehicles will be included in them and all their EV modifications like the EQE & the EQC will join them. These models will be available in higher volumes too. This will form the bulk of the sales in the country as people will be looking to differentiate themselves from others.
The entry luxury vehicles are being looked down by the company and it is said that Mercedes-Benz will cull its line-up of entry-level models from seven to four all the while elevating the technological substance of these products significantly. It is unclear what models will be cut-off from this line-up, but we can expect the top-selling models to last longer on the offerings.
With the present direction and trajectory, it can be clearly seen that the company is moving away from this entry level market. Or at least that is how it seems. So, we expect a good number of reduction in the number of models and new entries at this level. Even the electric vehicles from the company will come in the core luxury segment that is more profitable for the company.
What is in Store? The Future of Mercedes-Benz in India
India offers a huge market for the brand and some of its latest models like the CLA, A-Class limousine were welcomed with much awe. The new line up of Mythos has already generated much attention among the people and you can expect it to become an instant hit, once the model hits the dealerships in the country. With Mercedes Benz’s shift towards luxury, it will gain a greater fan base in India especially with its EVs.