Delhi diesel ban has driven majority of luxury car sales to Southern India

Teh ongoing diesel ban in Delhi NCR has driven the sales of luxury vehicle sales to five southern states, viz Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana, which have collectively clocked the highest growth in luxury car sales in India.

Data from Mercedes Benz tells that the share of southern markets in the overall India sales has gone up from 25% in 2014 to 30% in 2015, while registering 35 to 36% in the first quarter of 2016 itself. Out of these five states, Tamil Nadu is the fastest growing with a 30% growth in the first quarter, even as it faced a flat 2% national growth in the first quarter.

"The performance of the southern markets is now on par with the rest of the country and there are some markets which are growing much faster than our national average," said Boris Fitz, VP, sales and network development, Mercedes-Benz India.

The growth of these markets began last year when the sales from these five states clocked 41% growth as compared to the national average of 32% for Mercedes Benz.

In return, the company has started to put more dealer/distribution attention on these markets, while shelling out more money for marketing as well.

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