KUALA LUMPUR (Dec 15): Mercedes-Benz Malaysia (MBM) is upbeat about its vehicle sales outlook for next year, saying recovery prospects have brightened following the reopening of the economy. 

MBM vice-president of sales and marketing for passengers cars Michael Jopp said he is seeing some light at the end of the tunnel for the company.

“Taking into consideration the development over the last two to three months, I am very confident moving into next year. I think we are maximising our sales potential right now. If I look at our orders, the response continues to be very, very strong. 

“This is because the recovery after the lockdown was very steep and fast. Going forward, the outlook that makes me confident is that the overall economic recovery will continue,” Jopp said at a press conference on Wednesday (Dec 15) after the launch of a new Mercedes-Benz S-Class.

Against this backdrop, Jopp is very confident and expects significant growth in sales volume next year — assuming that no more additional lockdowns will be implemented — which will also be underpinned by planned new launches every month including electric vehicles (EVs) to take advantage of the full exemption from the import duty, excise duty and sales tax announced in Budget 2022.

MBM on roller-coaster ride this year

On the situation for this year, Jopp said 2021 had been a “roller-coaster ride” for the company due to Covid-19 induced lockdowns.

“We thought when we entered this year, the worst was over. The outlook was very optimistic and very positive. But there were two lockdowns that led to some significant setbacks just purely because from a sales perspective, showrooms were closed, our dealers could not sell and our customers could not take delivery, which led to a setback throughout the year."

Overall, Jopp expects the sales figure for 2021 to be “comparable” with 2020.

Asked if MBM would set up a locally assembled EV, Jopp said the company is considering this.

“At this moment, we will definitely start with completely built-up (CBU) [units]. The question is when will market demand justify local assembly, so we are observing that and, obviously, we will continue to consider local manufacturing,” he said.

MBM unveiled its highly anticipated flagship vehicle, the new locally-assembled S 580 e, during the day.

“The S-Class is the world's bestselling luxury limousine and we are also pleased that the new S 580 e will be a locally-assembled variant like its predecessor. This is a testament to our commitment toexpanding our foothold in the country.

“The vehicle underpins our claim to produce the best automobile in the world. This is where covetable luxury meets the greatest possible safety and highest levels of comfort,” Jopp said.

The final pricing of the new S-class model has not been revealed yet, but Jopp expects it to be higher than the current outgoing model due to technological advancement.