Mercedes Benz India operations relatively OK

Even as Daimler AG is moving towards a shorter working week for 47,000 employees in Germany, the company’s Indian operations seem to be unaffected.

Mercedes-Benz car sales have been registering a steep fall in sales in the Indian car market recently due to the worldwide financial crisis and its impact on India’s economy. Diamler AG worldwide is facing low sales too, and would go for a shorter working week in its four manufacturing facilities in Germany from January as a slump has hit the European market. The situation for Mercedes Benz is however different in India.

In view of the German situation, luxury car brand Mercedes-Benz India has said that it would not go for a single layoff in India despite registering a fall in sales. The car maker employs around 500 people working in India. The company has reiterated that no employee would be sent off.

Though it is a fact that Mercedes-Benz India has been facing problems since October 2007, the company is hopeful that the situation would change for the better soon. According to news sources, the company believes in the supposedly strong fundamentals of the Indian economy as compared with that in the other countries.

The economic turmoil has been affecting major corporates, and Mercedes hasn’t been an exception. However, the company has said that it has exceeded the initial sales target of 3,000 cars for the year in the first ten months of the current year. The company added that during the first ten months of the current year, it has sold 3,141 cars compared to 2,491 in 2007. However, sales came down to 170-odd units in October this year.

Mercedes-Benz India, which is a subsidiary of Daimler AG, made its presence in the Indian scene in 1994. Mercedes-Benz India is a 100 per cent-owned subsidiary of Daimler AG and is based at Pune in Maharashtra.