Luxury car maker Mercedes-Benz India on Monday said it has revised downwards its sales growth target for this year from double digit to flat because of the impact of the Supreme Court order disallowing sales of diesel cars above 2-litre engine in the National Capital Region and the recent demonetisation drive.

The company, which sold 13,502 units last year, however, said it will be looking to grow double digits in 2017.

“We had to re-route petrol variants from all over India to Delhi-NCR in the period (as a result of ban on diesel cars). We could adjust the margin but not in a major way,” Roland Folger, Managing Director and Chief Executive Officer, Mercedes-Benz India, told reporters here. The ban was subsequently lifted.

He said 2016 was a year of challenges, surprises and lost opportunities and hoped that the next year will be better for the industry as a whole.

“In October, when we came out of the diesel ban in Delhi-NCR, we were still looking for double-digit growth in sales from last year, but demonetisation has had an impact. We will be lucky if we do the same number as last year,” he said.

However, Folger supported the Modi government’s demonetisation move saying it will be beneficial in the long term.

“This will be a flat year for the luxury car industry in India. However, the next year should be better. We believe that the customers are only postponing their purchases and they’ll come back next year,” he added.

Meanwhile, the company opened its 11th dealership in Delhi at Ashok Hotel, Chanakyapuri. This is company’s 89th outlet in the country. Mercedes-Benz India has 25 dealer partners across its presence in 41 cities.

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