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Sudha Menon

Pune , Dec. 8

LUXURY car manufacturer DaimlerChrysler India Ltd is on a roll this year with sales of both the C-class and the E-class Mercedes Benz cars surpassing the sales targets in the current year.

The company's Managing Director, Mr Hans-Michael Huber, told Business Line the C-class Mercedes would post its best-ever sales since launch by December-end by when it would have sold 750 units.

The C-class, which is in its third year of production in India, sold as many numbers in the first year of launch following which sales had slowed down. "The C-180 suffered from the consumer perception that it was not powerful enough. Two-thirds of this year's sales came in the second half of the year when we launched the C-200 K in place of the 180," Mr Huber said. The C-class sold 620 units last year.

Mr Huber said sales of the E-class too have been much more than expectations with the car set to close the calendar year at 650 units as against the planned target of 570 units for 2003. The car sold 400 units last year. "We are now only restricted by the fact that we have a production crunch," Mr Huber said.

The company's premium S-350, a low-volume, high value product also surpassed its target of 75 units and will close the year at 84 units in 2003.

The car manufacturer, however, said that while its turnover would go up from Rs 320 crore last year to the level of Rs 360-370 crore, profitability would come under pressure due to the significant appreciation of the euro against the rupee. While last year's net profit before tax stood at Rs 39 crore, "our profits are likely to be 10-15 per cent lower this year," Mr Suhas Kadlaskar, Director, Corporate Affairs and Finance, said attributing this to the euro's appreciation mainly.

Mr Huber said that the company would devote calendar 2004 to upgrading the engines of its existing models and consolidating its completely built unit (CBU) programme. Car lovers looking for some real hot wheels can expect the top-of-the-line M-class (Rs 47-48 lakh), which the company is betting on along with high-end models of the S-class including the S-500 and 600. "We expect to sell at least 150 top end CBUs this year of which 35-40 units will be the M-class," Mr Kadlaskar said.

Meanwhile, even as the company remains tight-lipped about the CBU line-up, the industry has been buzzing with news that its most expensive offering yet, the super-luxury Maybach saloon, sporting a Rs 2-crore price tag, is expected to be unveiled at the forthcoming auto-expo in the Capital. Asked specifically, Mr Kadlaskar, however, said, "We are still deciding on the feasibility of bringing in the Maybach. Even if it is brought in, it will be a very niche market."

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