This article first appeared in The Edge Financial Daily on April 10, 2019

KUALA LUMPUR: Mercedes-Benz Malaysia, having launched the latest iteration of its A-Class limousine, announced yesterday it sold 2,944 vehicles in the first quarter of 2019 (1Q19), down 9.9% from 3,330 vehicles in the same quarter last year.

Despite the decline, the group maintained a 2.4% market share in the overall Malaysian automotive market, according to Mercedes Benz Malaysia president and chief executive officer Dr Claus Weidner during the group’s performance briefing yesterday.

Its 1Q19 sales comprised 695 sport utility vehicles (SUVs), 1,714 limousines, 108 dreamcars and 427 compact cars. Also, of the five vehicle models launched during the quarter, four were locally assembled at its plant in Pekan, Pahang.

The four are the E200 Sportsstyle Avantgarde, E300 Exclusive, E350 AMG Line and the GLC 300 Coupe.

Asked if the group will ramp up production at its plant here, Weidner said this depends on consumer demand, which it is constantly monitoring, while the group balances its financial obligations.

In terms of financing, Mercedes-Benz Malaysia, via its subsidiary Mercedes-Benz Services Malaysia (MBSM), has a portfolio of more than RM2.8 billion, constituting a 2% year-to-date growth and 18,500 active customers. In 1Q19, MBSM gave out RM321 million worth of financing.

Weidner cited every five of 10 Mercedes Benz cars sold in Malaysia were financed by MBSM, while every six of 10 cars in Malaysia were insured by the carmaker.

On this year’s overall outlook for the luxury automotive sector, Mercedes-Benz Malaysia sales and marketing vice president Mark Raine said it is positive, despite “sluggish” growth in total industry volume so far.

“We have seen a slight sluggishness in 1Q19, but the premium market is holding its strength in general,” Raine added.

On whether the group would be able to surpass its 2Q18 sales of 3,453 vehicles in the current 2Q19, Weidner declined to disclose the   target. “We are continuing to implement our strategy going forward, and are confident that it will be a successful 2Q19, and a successful year,” Weidner said.

The group’s new A-Class limousine comes in the A250 AMG Line and the A200 Progressive Line, at an estimated RM267,888 and RM229,888 respectively.