Systematic investment plans (SIPs), a new rival in the luxury vehicle sector, allow Indians to easily enter the stock market and debt savings via mutual funds.
Santosh Iyer, who will be taking charge as MD & CEO of Mercedes' India operations from January, in an interview to The Times of India, says, “As inflows into SIPs continue unabated, despite volatility in stock markets, disposable incomes into aspirational and premium products such as cars are not as widespread as they should be.”
While the luxury car industry is growing at one of its faster space post-pandemic, actual sales are a far cry from potential and wealth that India carries, he added.
There are 15,000 people inquiring about luxury cars every month, the actual order size is about 1,500 units.
“So, there are still 13,500 customers who desire to own a Mercedes-Benz, but postpone their purchase thinking that it's fine. Maybe, I should continue (with) my SIP or maybe the next dip (in markets) is there”, Iyer told the paper.
However, Iyer has been telling his sales teams to look into the matter of investments, so that his company can realise even higher growth rates. "They (SIPs) are our competitors. I tell my team if you are able to break that (SIP investment) cycle, then exponential growth is a given."
Investments into systematic investment plans are at all-time highs, as per the numbers released by industry body Amfi.
After continuously crossing ₹12,000 crore during the past few months, monthly investments into mutual fund systematic investment plans crossed a new record ₹13,000 crore for the first time in October 2022.
