Carmakers bank on merchandise as auto sector remains dull

Luxury auto companies are looking at a boom in their branded merchandise lines with growth rates between 12% and 15% in the last 18 months

Even as automobile sales have declined in August by 11 per cent, luxury automobile companies expect a boom in sales of merchandise in the coming days.

Branded merchandise of luxury carmakers has flown off the virtual shelves in the last 18 months, with growth rates between 12 per cent and 15 per cent while latest data by the Society of Indian Automobile Manufacturers (SIAM) shows that total sales across categories, excluding commercial vehicles, declined to 15,86,873 units last month, compared to 17,90,115 units in August 2020.

Merchandise includes t-shirts, caps, scale models, fitness bikes, bluetooth headphones, mobile coffee machines.

Also read: Automakers, smartphone cos see decline in production as global chip shortage continues

Mercedes Benz India started online merchandise sales in March 2020, and it already accounts for 20 per cent of its overall sales. “Earlier merchandise was bought by customers for self-consumption, now it’s more for gifting purposes,” Santosh Iyer, VP of sales and marketing at Mercedes-Benz India, told The Economic Times.

A spokesperson for BMW told ET that cruise bikes are proving a hit with the cycling fans but the most popular items are miniature models and clothing, including t-shirts, caps and jackets.

Ducati sells its products like branded sneakers only through authorised channels.