Mercedes teams up for insurance offer
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Mercedes teams up for insurance offer

Promotion set to spur sales at Motor Expo

A variety of vehicles on display at the 2023 Bangkok International Motor Show. Mercedes-Benz Mobility aims to boost its car sales during this year's edition next month through the launch of a new marketing campaign. (Photo: Pattarapong Chatpattarasill)
A variety of vehicles on display at the 2023 Bangkok International Motor Show. Mercedes-Benz Mobility aims to boost its car sales during this year's edition next month through the launch of a new marketing campaign. (Photo: Pattarapong Chatpattarasill)

Mercedes-Benz Mobility, the financial and mobility services division of the German luxury automaker, expects Mercedes-Benz car sales to increase during the Bangkok International Motor Expo later this year, despite a sluggish market, after launching a new sales promotion.

The company has teamed up with Thai Group Holdings Plc to jointly launch the Wealthy 5/1 savings insurance package, offered by insurance firm SE Life, to encourage people to buy its cars, said Supavut Jiramanusnakorn, chairman and managing director of Mercedes-Benz Mobility.

Mercedes-Benz buyers are required to purchase car insurance from SE Life in order to be entitled to Wealthy 5/1.

Under Wealthy 5/1, Mercedes-Benz buyers are required to pay a single premium for a life insurance policy, receiving 2.4% interest annually for five years.

Once the five-year time frame of the policy ends, policyholders receive all their money back.

"This is the first time two companies are offering this savings insurance package to Mercedes-Benz buyers," said Chotipat Pechanon, chairman of the executive committee of Thai Group Holdings.

Under the sales promotion campaign, the buyers are also not required to make a down payment of 1 million baht when purchasing new cars that are not priced above 3 million baht, he said, adding this privilege would last for three months.

"We expect the new sales promotion campaign to help increase the sales of Mercedes-Benz cars by more than 100 units during the Motor Expo," said Mr Supavut.

The annual car event is scheduled to be held late next month.

Mercedes-Benz is monitoring the impact of the decline in domestic car sales, which has mainly resulted from banks tightening their lending criteria in granting auto loans for fear of non-performing loans amid the high level of household debt in the country.

The debt problem, coupled with the sluggish economy, is affecting manufacturers across various car segments, including luxury, which is usually resilient because of high purchasing power.

The automotive industry has been impacted by the economic slowdown this year, making it difficult for manufacturers to increase sales, including for general passenger and luxury cars, Martin Schwenk, president and chief executive of Mercedes-Benz (Thailand), said earlier.

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