The market in the premium segment can be challenging as the customers are usually more dynamic and demanding.
Mercedes-Benz Malaysia (MBM), however, is keen to better cater to these customers. Despite having a strong brand presence in the country, the company is determined to maintain its position as the No. 1 premium brand in terms of sales figure.
The company has sold more than 7,700 units of vehicles YTD (year-to-date) as of October, with 7,577 of them portioned by passenger vehicles.
Cars Bikes & Trucks recently had a dialogue with Michael Jopp, vice-president of sales and marketing of MBM during the launch of the Mercedes-AMG GT R and GT C in Sepang International Circuit.
Jopp took up the position in July. Previously, he had been spearheading a similar division in Mercedes-Benz India Pte Ltd for close to three years.
He emphasised the company’s commitment towards the market: “We try to be as customer-centric as possible in whatever measures or activities we are involved in.
“Constant engagements are taken, such as the Mercedes-Benz Driving Experience,” he commented.
The driving experience for customers was one of the subsequent activities after the GT R and GT C launch.
According to Jopp, product launch was always the most exciting milestone and they aimed for it to be as exciting for the customers as well.
“The Mercedes-AMG GT is the top of our portfolio, the cars are very exciting to drive and experience.”
However, MBM had introduced the range-topping AMG GT R and AMG GT C to represent the updated Mercedes-AMG GT range instead of introducing the base GT and followed by GT S.
When asked about the decision, Jopp explained: “R is the top of the line, so from our perspective, that is an easy choice.
“In our portfolio, they are finely differentiated in terms of pricing, equipment and package. We feel that the GT C — while not as radical as the GT R — it is a high emotional product and more emotional than the base GT.”
He added: “The pricing difference is not as significant (to the base GT). So that is why we decided to bring the C.”
Jopp also noted that from its experience with customers in Malaysia, those who would go for these kind of cars tend to want the best offering available. However, MBM has yet to plan the roadster version of the AMG GTs.
Having rich industry experience and decades of expertise in sales and marketing, Jopp stated that the challenge in the market was always to balance the supply and demand.
“What we are experiencing is a little dip in sales, due to economy. There was a tax holiday last year, so there was pull-ahead of demand,” he said.
Recalling his experience in India and comparing it to the Malaysian market, Jopp shared that there were recurring themes. “Similarities are (that both markets have) very demanding customers in terms of product, treatment and expectations. But obviously, size-wise, there is no comparison between Malaysia and India. Premium market in India is about the same size as Malaysia’s TIV (total industry volume), although percentage wise it is much smaller there,” he added.
Many factors contributed to the market size and share between the two countries, he said, with elements such as infrastructures, traffic conditions and car pricing because the cars are taxed even much higher in India.
“But we are also No. 1 in India,” he added.
On local assembly and exports, MBM had in August commenced the production of its first ever left-hand drive version of the C-Class to be exported to the Philippines.
“We are happy that the plant could be expanded into the third line, giving us the capacity, optimising the efficiency of the manufacturing processes.”
The company is also eyeing new opportunities to market its vehicles in Southeast Asia.
“We are also expanding our production footprint and capacity that we have for the Malaysian market, and geared up for future growth,” Jopp ended.