Mercedes may cruise with A-Class in India

The company would also introduce series of new models of hybrid vehicles in the global market. "We are evaluating the Indian market regarding price positioning and overall perception of the company as far as the AClass range is concerned.

However, we have not taken any decision so far whether and when to introduce the AClass car in India," Mercedes Benz COO Rainer Schmuckle told reporters on the sidelines of the 48th Siam Annual Convention 2008 here.

He said market conditions in India are quite dynamic and the luxury-car market is growing by 30-40 per cent annually. "Although, during recent months the growth has slowed down a bit, we are hopeful that the drive will resume within the next 12-18 months," Schmuckle said.

Mercedes-Benz is also planning to bring out a series of new hybrid models. It is introducing new S-Class hybrid car in the global market in 2009, which would be followed by a series of more such vehicles in 2010 and 2011, he added.

He, however, refused to disclose whether the new hybrid models would be introduced in India also. "Electrification, investment in fuel cells and improving existing internal combustion engines are big priority areas for our company's R&D and we are committed to offer our customers the most fuel-efficient vehicles, which are at the same time a luxury and has the aspect of beauty," he said.

Regarding competition from other manufacturers, Schmuckle said the entry of newer players in the luxury segment is proving to be beneficial to Mercedes-Benz , as the company is now striving to maintain its market share by means of innovations.

Mercedes-Benz is also planning to increase its sourcing from India. "We are looking at increasing manufacturing and R&D sourcing to the European market from India in the years to come," he added.

Aiming to retain its slipping market share, Mercedes said it will increase its investment in India to compete with peers in the segment. "We are increasing our investment ... to make sure that we have latest technology and the best product," Mercedes-Benz India managing director and CEO Wilfried Aulbur said.

The company is also investing heavily on training its dealers across the country, he added. When asked whether the developments at Singur would deter the company's further investment plans in India, Aulbur said, "We take a long-term view on India, positive view. We put the investment on the growth that we think is necessary to cover for the next 5-10 years. So there is no immediate need to invest further." Last year, the company had sold 2,491 units and till August this year it has sold 2,487 units

"We have crossed last year's target and we definitely hope to achieve 3,000 units-target by the end of this year," Aulbur said. India has a potential luxury car market of 7,000-8 ,000 units a year. "So there is still potential to grow in the next few years." Though rate of interest has gone up, it has not dampened the demand of the luxury cars

When asked if the current rough side of the Indian auto industry has affected the company, Aulbur said," There is some slowdown in terms of request for finance among our customers " .