Mercedes Benz targets Rs. 350 crore turnover

Notwithstanding the increased custom duty, the Pune-based luxury car manufacturer Mercedes Benz India has plans to import a few models from its international stable this year. "It will happen in course of time and the models that we are looking at are B, SLK and CLK class cars", announced Mr. Jurgen Ziegler, managing director and chief executive, Mercedes Benz India.

On the other hand he said the company is yet to seriously consider venturing into commercial vehicle production collaborating with Hyundai Motors. Internationally, Mercedes’ parent company, DaimlerChrysler, has equity holdings in Hyundai Motors (10 per cent) and Mitshubishi Motors (37 per cent).

Launching the company's new offering Mercedes Benz C class in Chennai Mr. Ziegler said that the demand volumes - around 100 cars per year- clearly doesn't justify domestic production of models that are planned to be imported. The Rs. 600 crore equity based
company's Pune plant has a capacity to roll out 1,500 cars per annum. "We have a technical capacity to go up to 9,000 cars. The current capacity is enough to cater to the domestic market," he remarked.

Clocking a turnover of  Rs.240 crore and a profit of Rs. 20 crore last year, Mercedes Benz according to Mr. Ziegler is targetting a sales of Rs. 350 crore this fiscal selling around 1,330 cars- E class 450, S class 80  and the newly launched C class 800 units- this
year.

According to him, the company exported DM 85 million worth of auto components from its Indian joint ventures. "Our localisation level stands at 50 per cent now and it may go up further," Mr. Ziegler added. Mercedes Benz outsources the painting work and some body panels so that the company could focus on its core business of designing automobiles, he said.

Though launching new models Mercedes Benz doesn't have any plans of increasing its dealer network from the current levels of 11 spread out in all the metros and other major cities. "We have to see the viability of appointing more dealers," he reasoned. The company has 13 workshops to take care of after sales service.

Speaking about the company's new model, the C class Mr. Ziegler said the car allows customisation. Two distinctive design and equipment lines provide an answer to the modern demand for individuality. Further customisation is possible through options like metallic colour, leather upholstery and automatic gearship.