Mercedes-Benz India eyes smaller towns of the country to become strong market for its pre-owned car business. The luxury car major eyes over 20 per cent of its overall luxury car business to come from tier-2 and tier-3 towns. 

"Smaller towns are showing good potential for pre-owned luxury car segment. The customers are first time buyers, unlike metros where people would go for car upgrade through this option. We expect tier 2/3 will give us over 20 per cent volumes in our business in coming months," said Boris Fitz, vice president, sales and network development, Mercedes-Benz India.

The company opened first standalone Mercedes-Benz Certified showroom in Ahmedabad. The pre-owned luxury car business was started in December 2014. 

Fitz mentioned that unlike the European markets, where pre-owned luxury cars are sold three times more than that in India, the market will grow significantly in coming time as the domestic economy strengthens.

"The buyers of pre-owned cars are mostly self-employed individuals, but we also see significant buying from large corporate as well. Even in the pre-owned segment, the confidence on the brand remains intact as it is Mercedes certified," said Sanjay Thakker, Managing Director, Benchmark Cars, Ahmedabad-based Mercedes-Benz dealer.

According to Fitz, luxury car segment continues to grow even in the odd situations for the overall auto industry. "The luxury car segment has grown even when the overall passenger car segment had witnessed slump or a flat year. Factors such as growing economy, stable government, reforms taking place, monsoon and lower interest rates would further boost the luxury car segment," he added.

Mercedes-Benz has reported 41 per cent growth for the January-June period with sale of 6,659 units as compared with 4,717 units in the year-ago period. 

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