MotaAuto.com recently met Nadia Trimmel, Vice-President Marketing & Sales at Mercedes-Benz Malaysia, at a media event and talked to her on a few auto market topics as well as her view of the differences (and similarities) between motoring conditions in her home country of South Africa and Malaysia.
The following are the highlights of the interview:
Mercedes-Benz announced earlier this year that it is adjusting its EV transition plans due to the sales volumes not being as expected. Does this change in planning also affect what Mercedes-Benz Malaysia has planned in its push for electrification?
Our global strategy is always adapted to local market demands and infrastructure and Malaysia is no exception. Mercedes-Benz Malaysia remains committed to offering sustainable mobility options, with a robust line-up of plug-in hybrid electric vehicles (PHEVs) and EVs.
Mercedes-Benz will consistently create the preconditions for a CO2-neutral new car fleet by 2039. I should clarify that net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
The pace of transformation is determined by market conditions and the needs of our customers. We will build the perfect Mercedes for every customer request. Into the 2030s, we can flexibly offer vehicles with both a fully electric drivetrain or an electrified high-tech combustion engine.
To achieve this, we made our production flexible in terms of drive systems. For the further development of our product portfolio, we will sustainably leverage efficiencies between new and existing models. All new models from Mercedes-Benz will meet the highest demands of our customers.
What sort of initiatives does Mercedes-Benz Malaysia offer customers who buy one of your EVs? Some companies have collaborations with charge point operators and some work with their dealers to ensure that charging stations are available at showrooms.
Mercedes-Benz Malaysia is dedicated to supporting the EV journey, providing an extensive range of EV and PHEV options that offer true luxury of choice for our customers. Firstly, we offer a wallbox for home charging and we also have the option of charging credits with our partner, Gentari.
To enhance the EV ownership experience, we are expanding our charging network, including installing charging points at selected showrooms, and we’re actively exploring partnerships to increase convenience and accessibility.
Our goal is to ensure that owning and driving an EV is as seamless as possible, allowing customers to feel fully supported and to enjoy every aspect of their Mercedes-Benz journey with complete peace of mind.
I believe that you led the South African team which introduced the Mercedes-Benz ‘Retail of the Future’ approach so you would be very familiar with it. Can you explain more on this sales operating model which was also introduced in Malaysia last year?
‘Retail of the Future’ is a milestone in our commitment to delivering an elevated, customer-centric and optimised experience. The idea behind it is – and I can’t stress this enough – putting the customer at the centre of what we do, eliminating intra-brand competition so that we offer our customers the best value, the best price point, no matter where they go.
It’s customer-centricity; it enhances the customer journey, focussing on the experience versus trading on a price. So it’s more focused on their whole customer journey and how we deliver the product. And this feeds into the luxury experience which is consistent across our retail network.
By offering transparent and consistent pricing and direct engagement with customers, we ensure that every interaction aligns with Mercedes-Benz’s standards of luxury and excellence. This model allows customers to enjoy a premium experience that is consistent across all channels, ultimately making the process of buying a Mercedes-Benz simpler and more rewarding.
Talking about the process of buying a Mercedes-Benz, what’s your view of the use of online sales channels which seems to be a slowly growing trend?
Online sales are an integral part of the customer journey. Customers are looking for convenience, having the ability to shop online without having to go out for whatever reason and the online channel gives them that flexibility.
It’s another platform to use in the customer experience – for those who want that convenience of shopping from their couch and not having to touch and feel. But we find that most customers still want to touch and tangibly feel the luxury and emotion evoked by being inside around our cars.
So our dealerships will always have a place in that customer journey. And when you’re dealing with a luxury brand like Mercedes-Benz, it would be a shame if customers couldn’t touch and feel and sit in the cars, and appreciate the craftsmanship. Thus we continuously look at the evolving trends and the needs of our customers and enhancing that customer journey and physical experience in our showrooms.
For our retail partners, this means balancing digital presence with inviting physical spaces that reflect our brand’s luxury standards. Both elements are crucial to delivering the level of service and experience our customers expect from us.
While the Chinese brands we now see coming into the market are not direct competitors to Mercedes-Benz, they could be potential competition in the future, as Lexus became. And they are more active in the EV segment so that could also distract customers, even yours.
In terms of the essence of the brand and what Mercedes-Benz really stands for, I think we still own that space. I think what our offering entails, as well as the customer experience, should always set us apart. However, any new entrant into a market segment can create a bit of distraction for customers.
We do keep a very close eye on the development with the Chinese brands. Even though we, like you said, might not be considered a direct competitor, but it does influence the market to an extent that we need to make sure that we are steadfast in what our customers are looking for from a Mercedes-Benz in this whole process.
So we’re very much aware, and this is why we continually enhance our offerings, look at what our customers are asking for, and that ranges from the product offering as well as the experience, because there are some things that simply can’t be matched. We’re definitely not complacent.
With 2 months left to go, how do you see the market finishing off this year for Mercedes-Benz? And what do you expect next year?
In general, the market has some distractions with the new entrants. In terms of the outlook for us, I think the market is quite resilient. We know that there’s still a large number of customers who want a luxury brand and its products and experience. There’s largely positive sentiment but the environment is quite competitive, I will not deny it.
But like I said, our focus from a Mercedes-Benz perspective is always looking at the customer experience and the value we offer overall. As always, you can expect some new models from the Mercedes-Benz brand during next year. And that reflects our continued confidence in the market – that there’s still opportunity for us to bring in new products and deliver that with the best possible customer experience.
You come from South Africa and we both drive on the same side of the road. So how do you compare the motoring conditions in your home country with the Malaysian one that you’ve would have already experienced?
Yes, we drive on the same side of the road so for South Africans, it’s not that difficult to adapt to the Malaysian style of driving and the road conditions are very similar. While you have lots of motorcycles here, we have many minibus taxis in South Africa. So we’re used to having to squeeze in and out trying to get past in the traffic!
From a market environment perspective, there are also similarities in terms of the competitive landscape, South Africa, like Malaysia, is quite diverse, with quite discerning customer groups and preferences. If you look at the players in the market, they’re very similar in terms of the long-standing key players, as well as the new entrants wanting to penetrate the market.
What I can say is slightly different to South Africa, is that I drive an electric vehicle in Malaysia, which I didn’t in South Africa, and this has been an easy transition and I love driving my electric Mercedes-Benz as much as enjoyed my previous Mercedes-Benz ICE variants.
So electrification in South Africa is not proceeding like in Malaysia and many other countries where the government is giving incentives and has a roadmap to switch to EVs?
There are talks, there are white papers (as we call them) in circulation, but no official regulation or incentives or anything like that yet. But the auto industry is really lobbying strongly and the government is quite open to these discussions, but nothing formally announced yet.
It’s quite encouraging for me to see in the Malaysian market that the appetite for EVs is a bit better than what I experienced in South Africa. So in terms of our Mercedes-Benz offering and moving in that direction with plug-in hybrids and battery-electric vehicles, I think the market shows potential and opportunity. From a strategic perspective, global strategy is to increase our penetration in battery-electric vehicles as well as PHEVs, where market conditions allow. The uptake might not be as high as anticipated, but there’s definitely opportunity in this market.
A final question about your past experience with an American and a Japanese car company, as well as now being in a German company. What differences in the working culture and operational processes did you notice?
In general, the cultural differences are prominent. But I’d say when it comes to business principles, every company strives for excellence. What sets German automotive engineering apart is the technology and the innovation, which is what we really stand for.
The cultural differences, as I mentioned, are probably the biggest differentiating factors across the various companies. As you would expect, people are different across the different brands that I’ve worked for over the past 25 years. So you would expect that there’s a different style of leadership, a different way of working.
What stands out the most with the Japanese company that I remember quite well was a lot of pre-discussion, pre-negotiation for a completely aligned approach before going to market.
From a German perspective, we are quite bold with making decisions – like we’ve done on the expansion of electric vehicles. I think our Mercedes-Benz organisation has also been quite bold in terms of stating the ambition and creating the conditions towards realising our ambition, specifically where market conditions allow.
The brands I have worked for have shaped me into who I am as a professional and as a leader, and I value the learnings and insights gained over the years at each one of these companies.
New Vice-President for Marketing & Sales at Mercedes-Benz Malaysia