Mercedes Benz India is getting about 60 per cent lower-than expected turnout at some of its dealerships as consumers seem to have deferred plans for big, discretionary purchases following the government’s demonetisation move, CEO Roland Folger said. However, the sentiment is temporary and should improve by December, Folger said, adding that the scarcity of cash would not impact sales as the luxury car business does not depend on cash transactions. “What we’ve heard from some of the dealers — but then that’s only 20-30 per cent of all our dealerships — is that the turnout of buyers is low. On the other hand, some of them are at 100 per cent of what they were supposed to achieve,” he added.
On November 8, Prime Minister Narendra Modi demonetised currency notes of Rs 500 and Rs 1,000 denominations. The move, aimed at controlling black money and fake currency, has created a paucity of cash in the country, hitting consumption and purchases across sectors.
Leave a Reply