Mercedes-Benz models dazzle at Chengdu Motor Show

German premium automaker places strong emphasis on latest services and initiatives

More than 400,000 new customers have chosen Mercedes-Benz in China so far in 2018, bringing their total number of customers since entering the Chinese market up to some three million, the company said.

This was emphasized on Friday during the Chengdu Motor Show by Nicholas Speeks, president and CEO, Beijing Mercedes-Benz Sales Service, or BMBS, who added that this has allowed the German automaker to achieve a 13 percent year-on-year growth in the first seven months of 2018.

"That means so far this year we have already out-performed our entire-year results from 2015," he said during his sixth visit to the auto show in Chengdu, a historic city in the heart of southwest China.

Six years ago, BMBS established a regional office in the city with only 28 dealerships radiating across western China, but now, they work in the same area with nearly 100 dealers who together with other dealers have crowned Mercedes as the top dog for dealer satisfaction for the fourth year running.

This year's Chengdu Motor Show saw a dazzling portfolio of 37 Mercedes-Benz models, including the 2018 S-Class flagship sedan and the AMG GLC 63 SUV family - essential additions to the market, according to the company.

Fascinating lineups have helped to sustain healthy growth in the market and it is these that have enabled the three pointed-star to post such impressive results so far this year. However, the ultimate goal for the company is not simply to focus on numbers, but rather to offer premium products and services, ensuring customer satisfaction.

"We continue therefore to persevere with the direction that we set ourselves, to be fair with our customers and to provide them to the best of our ability, with the very best cars, premium services and an experience with our brand that exceeds their expectations," Speeks told China Daily.

In the face of the current market conditions, this is not an easy mission. According to the China Association of Automobile Manufacturers, or CAAM, the industry experienced a 4 percent drop in July, decreasing for the second month in a row, which in recent years is highly unusual.

"We're satisfied with the growth so far, but whether we are able to maintain it at that pace is uncertain."

Speeks stressed that he remains confident about business in China.

"We are still showing steady growth in China but our aspirations for 2018 can be moderated if necessary," he said, adding that "we need precise handling to tackle every twist and turn, and at the same time the power and conviction to stay at the pole position."

Despite some uncertainties in terms of global trade in recent months, Mercedes' strategy in the Chinese market has remained successful.

"For a few months the market has been volatile, but we still have high showroom traffic, and market feedback on brand value including pricing remain stable with a value premium.

"Stable pricing is also in the interests of our customers, not just our dealer partners."

Speeks added that Mercedes-Benz keeps an eye on its competitors and evaluates market situations to ensure that the company continues to guarantee that what they offer reflects its value proposition.

"It's part of the attraction of Mercedes, that it retains its value."

Regulations, effective from April this year, require that new energy vehicles make up at least 10 percent of manufacturer's output in 2019 and 12 percent the year after.

"I believe in time the government will move to create financial subsidies and material incentives to encourage people to use electric vehicles," he said.

Speeks announced this at Chengdu Motor Show, just five days before the debut of the EQC, the automaker's very first pure-electric vehicle, in the Swedish capital of Stockholm.

According to a press release earlier this year, the car will be locally produced and launched in China in late 2019 and by 2022, the automaker will have a total of over 10 fully electric cars.

Speeks believes that the EQC is likely to share the same customer base as the E-Class and S-Class who opt for premium products, resulting in some degree of substitution.

Regarding the current competitive landscape that contains numerous new EV players, Speeks remained positive, he said, "It will be an interesting game and as we look at our core competitive field I think the landscape will change."

An example of this can be seen from the appearance of neo house, a similar in concept to the Mercedes me Stores, which make use of cuisine, arts and the latest fashion to reach outside the realms of the automaker's customer base.

Two stores have already opened in Beijing and Shanghai, and another is expected to open shortly in Chengdu.

At the Chengdu Motor Show, not only did attendees have the opportunity to view the 2018 S-Class and AMG GLC 63 SUV, but also the V 260 Sport Edition, 2018 Standard Wheelbase E-Class Sport and other models from the Mercedes-Benz compact car family.

The German automaker said it will introduce 12 brand-new and facelifted models, including the All New A-Class L sedan that has already been showcased at the Beijing auto show and the much-anticipated new C-Class, to the market this year.

"The best days for us and for China are yet to come. We have always believed in poetic future," Speeks said.

zhuanti@chinadaily.com.cn

(China Daily 09/03/2018 page11)