The Hindu Business Line : DaimlerChrysler looking at more models

NEW VARIANT: Mr Wilfred Aulbur, Managing Director and Chief Executive Officer of DaimlerChrysler India, with the premium Mercedez-Benz CL Class. The car is priced at Rs1.2 crore. — Mohammed Yousuf

Hyderabad April 28 German automotive major DaimlerChrysler is evaluating some more models for launch in India even as it is gearing up to lay the foundation stone for a new plant near Pune in May.

This plant, with a capacity of about 4,500-5,000 cars per shift, would be commissioned by the end of 2008 or early 2009, according to Dr Wilfried Aulber, Managing Director and Chief Executive Officer of DaimlerChrysler India.

Dr Aulber told presspersons here that the Indian market had been extremely buoyant for the company and the first three months were witness to a 17 per cent growth.

While the company expects to continue the current trend, he said that the market for luxury cars was set to expand in India, and the learning from China provides significant insights into the way luxury car market has evolved there.

Introducing two of its latest luxury sedans — S 320 CDI and CL in South India, Dr Aulber said, "Young successful Indians — both entrepreneurs and professionals in the IT, financial services and areas such as real estate, are gradually shifting to big cars. Our production is fully booked for next two to three months."

Referring to the Indian automotive market, Dr Aulber said, "Some of the automakers are feeling the pinch of high interest rates for cars that has impacted their car sales. However, from our company's point of view we have had no such problem.

"However, duty cuts, which were expected from the last two years have not yet happened. Globally, trends show that whenever there is duty cut, the sales go up and the Government too gains through higher volumes. If a similar thing was done in India, we would also see the market expanding."

"While the Indian market now accounts for about 1.2 million cars, the Chinese market is about 3-4 times that of India and of that, about 3.2 lakh consists of luxury cars where we play a role. In a few years, the Indian market is also set to grow," he said.

Asked about their commercial vehicles, Dr Aulber said that their vehicles had been tested at three mines in India and have received encouraging response. The company is evaluating various options, he said refraining to divulge information on competitive considerations.

The Indian market has emerged as a major sourcing hub for DaimlerChrysler over the years and has emerged as one of the largest for a European company. This is growing by about 20 per cent per annum, and far outpaces any other country in the region, Dr Aulber said.

The southern market accounts for about 30 per cent of total sales in India, and Hyderabad and Andhra Pradesh have become hotspots. The company is pitting two of its latest sedans that stretch up to Rs 1.7 crore for the discerning car lover.