[Malyaj]

Maybe Mercedes needs to finance Zindagi Na Milegi Dobara Part 2, and throw in some of their cars to be used for free in the shoots.

Maybe Mercedes should help people plan their finances well so that 5 years down the line they can put a downpayment for their entry level model. SIPs could be a good start.

[Apex1815]

Mr Iyer should implement this on himself first :

Mr Iyer might be earning in Crores and might be investing Rs 2 to 3 Lacs monthly in Mutual Funds. He should stop investing and channelize his funds towards a Luxury Helicopter or Private Plane. Who knows the demand of choppers may increase exponentially with such buyers.

[GeeTee TSI]

Perhaps a comment made with a positive connotation on affordability via better, more flexible financing to bring new entrants into the luxury marque family might have been in better taste
Heck, he could have even lambasted the regressive taxation of cars in India, which surely would have resonated better!

[PRS7]

It is an un realistic expectation by the CEO that if social security measures are in place people will reduce investing and start buying his cars instead. The first part may be right as some people will be inclined to pursue their desires using the money they would other wise invest in savings. But it cannot be guaranteed that the desire would be for a new Merc

[M.Dua]

I am sure Mr. Merc India would have not assumed it to be such a buzz when he said it; it has only multi echoed the message and people would feel they are financially illiterate if they end up buying Merc with a lower income than they should. It has led to so many new articles about why you should not buy a Merc unless you make X money.

If Merc team is doing the research and they are reading through T.Bhp, guys for gods sake I will NEVER buy a C class for 65 lakhs. My cousin got his A4 for 44 lakhs a few months ago, one of my friend got his C220d for 42 lakhs 3 years ago.

Please wake up, a 1 lakh increase in cars price is Rs 1.75 lakh on road(50%GST+Inss+Roadtax+Green Cess+TCS) and vice versa, a 4 lakh lower price will translate to minimum 6-7 lakhs reduction in on road price.

Make it more affordable, make it more lucrative, make it more approachable and people will buy it. I myself drive Volvo S60 and I very much foot the category who can easily afford one of your machines but not at these prices, I would rather have a year end deal on a Skoda which will be 80% of your car at 50% of the price than paying a premium for just the brand value.

[revsperminute]

A luxury car being compared with a SIP is something new. On top of that, coming to Mercedes themselves, they overprice their cars and target customers who they know will not look beyond the three pointed star. Unfortunately for them, the younger demographic looks at Mercs as ‘uncle’ cars. I’ve observed Es and GLEs to be the most common mercs whereas other brands dominate the 40-80 lakh rupee segment.

Moreover, with the way the world has been over the past 2 years investments and liquid cash have shown how important they are when there’s a crunch. We got a GLE instead of an Endeavour back in 2018. Don’t think we would have done the same today. A luxury marque is not just a one-time investment either. Everything from Insurance, maintenance to the tips you have to give to a valet increase exponentially.

[MCR]

Its really an Apple v/s Orange comparison really.
Not all who can afford would buy a luxury car. Its more to do with remaining discreet and "below the radar" sometimes. Personally, I like to buy multiple cars rather than one big luxury car. For me the reason is simple, no eyebrows raised, not really a pain to maintain and most of all, easily disposable at the time of a new purchase.
SIPs are a great tool for investment as are Mutual Funds. As they say "Money grows Money".

[DigitalOne]

Originally Posted by SoumenD

We have a lot of Merc/Premium car owners on forum. Would be good to hear from them directly.

Are you interested to hear from a long time SIP investor who doesn't own/want to own a premium car ? I have been investing in SIPs since 2005-06 and can definitely afford to buy a luxury/premium car now but I won't.

I am loath to extrapolate my thought process to other SIP investors, but I believe the habit of being systematic in investment (not only MF) changes your attitude towards money and life. It is not stinginess or miserliness (I hope )) Every purchase is evaluated on the value that one can derive.
If and when I upgrade from my current Verna, an 80-lakh Merc will never give me the satisfaction of value that a 40L Superb or Kodiaq will give. It's a mental thing.

[GS300]

I started an SIP specifically to buy myself a luxury car. The idea was, by the time I am of a certain age, I should be able to buy a luxury car, without taking a loan.
Now, after many years (around that initially targeted age), and at a stage where I may not require that original investment to buy a luxury car, I decided against it.
Recently bought a very ordinary SUV (Alcazar) instead.
These are the reasons why I did not go for a luxury car, in spite of being a hopeless fanboy of brands like BMW, Lexus or Porsche.

1. The TCO (total cost of ownership) for these cars in India seems to be much higher than the same in USA, Europe or Middle east.

a. Ex-showroom price

b. Taxes

c. Maintenance costs shared in different t-bhp threads

d. Fuel costs

So even if you are ready to pay premium for these luxury brands, all other components make it a really less value for money purchase.

2. Inadequate road infrastructure, bad traffic: I am worried I will be in constant tension that a badly constructed speed-bump, or a large pothole or a rash two-wheeler might cause damage to the expensive vehicle.

3. From an Engineering or refinement point of view, apart from the ‘status’ indication (no judgement here), the gap between an expensive vehicle and a ‘mass market’ vehicles are reducing. You do get a large number of creature comforts and features in lower segment vehicles. Just like many other technology areas, more and more features are getting ‘commoditized’. The fact that the advancements nowadays are more in software or electronics rather than pure mechanical elements, is probably accelerating this phenomenon.

4. Globally, automotive scene is going through a transition. Many companies are wondering whether to go full fledged into EV space or not. Battery technology, autonomous driving, subscription vs ownership etc – if any (or a combination) of these goes through an inflection point, the mobility space will transform to an entirely new place. So, that makes one hesitant to put large sums into it, and I lean towards a ‘wait and watch’ approach for the next 5 years or so.


Many of the above points might be debatable. But those are the thoughts crossed my mind when I was in that dilemma a few months back. I might still go ahead and buy a luxury car. But that might be after 5+ years, and most likely a luxury EV.

[Linuskm]

Planning your SIP

Say the price of a C-class Mercedes-Benz in Mumbai today is Rs 65.33 lakh. If you wish to buy a Merc in, say, five years, the price is bound to go up. Assuming an inflation rate of 6 percent, the price is set to go up to Rs 87.42 lakh. That’s how much you need to buy a Merc after five years. How do you get there?

All you have to do now is work backwards to figure how much you need to put aside, every month, in an MF SIP. If you assume equity markets to go up by 12 percent on a compounded basis, you need to start a SIP of Rs 1.05 lakh. That’s what you need to set aside every month, for the next five years

Source https://www.moneycontrol.com/news/bu...t-9612631.html

[narayans80]

Basically by drawing parallels on Mercedes-Benz v Mutual Funds. Is he trying to tell us "Mercedes Benz ownership is subject to after-sales risks. Please read ownership reviews carefully before buying" ?

Sounds a bit like statements that Maruti chairperson RC Bhargava makes from time to time. Just that this looks more like a joke than something worth discussing.

[Linuskm]

[quote=GS300;5447768]

1. The TCO (total cost of ownership) for these cars in India seems to be much higher than the same in USA, Europe or Middle east.
[quote]

It's insane in INDIA the amount of taxes a tax payer has to pay to enjoy a nice car with his hard earned money. I remember in US it is like 3% taxes and ~$250.0 for tag plate.

[laser2707]

This was headlined in the business pages of TOI and I read it with utter disbelief.

To rationally think that any of my countrymen (Indians i.e) would splurge on EMI's rather than put money away in SIP's is absurd.

I think it was an off the cuff remark which was taken out of context and headlined like this. Whatever may be the case, MF's are not going away. So the folks at MBIL better have some new tricks otherwise this cribbing about SIP's is not going to get them anywhere. I suspect this is an excuse they are peddling to their German principals to explain their languishing sales volumes.

Given the economic uncertainty it is prudent to save and invest rather than spend. It is just plain common sense. No matter what some top honcho says!!!

[SoumenD]

Originally Posted by DigitalOne

I am loath to extrapolate my thought process to other SIP investors, but I believe the habit of being systematic in investment (not only MF) changes your attitude towards money and life. It is not stinginess or miserliness (I hope )) Every purchase is evaluated on the value that one can derive.
If and when I upgrade from my current Verna, an 80-lakh Merc will never give me the satisfaction of value that a 40L Superb or Kodiaq will give. It's a mental thing.

Precisely the reason SIP folks would seldom buy a Merc ever in India that too right out of showroom. Used maybe. And I am with you on the value bit. Having joined the SIP bandwagon few years back(fairly new compared to you) can totally relate to the change in mindset.

Having said that, if the tax structure here for luxury cars were a bit 'humane' and we were charged atleast similar to let's say US, the numbers would have been way more IMHO.

BTW I guess folks who do buy Mercs 1st hand don't really depend on SIPs for their retirement or future goals. So SIP crowd shouldn't/can't be their target market anyways.

[vjbox]

The statement made by Mercedes India's upcoming CEO sound like a lament than anything. True he needs aspirational customers more than just the 'rich' segment to buy their cars as that is precisely the segment where goals are set for materialistic things like cars and when they reach there some day, they quench that desire. Most of us right on this forum can relate to it and have walked that exact path by setting a goal or two and acquiring it. And I am sure we had our own rationale and excuses when doing so. Its also true that this so called aspirational segment is now prudent enough to invest for their future in the form of MFs and whatnot, becoming financially wiser.

The way he has expressed blatantly isnt too nice to read and he could have worded this sentiment in a better way. He as a leader needs to focus his energy on how to woo those customers instead and not complain.
For instance, I run a gaming company and I obviously desire that my customers/ users spend more time to play our games so we make more money. If I go on to make a statement saying' Academics seem to take away our customers and schools, colleges are our real competition', I would be bashed and my effigy would be burnt.

We live in a capitalistic economy and money needs to change forms and hands, not everyone can draw this conclusion that cars are a waste of money. If thats the case, everyone would just be sitting on SIPs and lumpsums. What matters is the right balance and approach towards assets and liabilities. The sort of stuff that needs to be taught at the school level and it isn't. If one can upgrade their career/business enough to able to invest, grow and still acquire their desired vehicles without worrying much about depreciation ( in case of individuals) or resale, nothing like it. Unfortunately its this balance most people miss out.