Daimler to launch compact car in 2012-13 in India

German automotive major Daimler is planning to launch its compact car in India by 2012-2013. Meanwhile, during the present year, the company is planning to sell over 7,000 luxury cars in India under its brand Mercedes Benz and 140 buses. The company is betting big on tier-III and rural parts of the country.

Mercedes Benz India Pvt Ltd Managing Director and CEO Peter Honegg said, “We will launch the compact car by mid next year in Europe and in India it will be launched in 2-3 years.”

The car will be brought here as a completely knocked down (CKD) unit, he said on the sidelines of launch of Daimler’s financial arm Diamler Financial Services India Pvt Ltd (DFSI) at Chennai on Wednesday.

He said the compact car rolled out of Daimler’s plants in Germany and Hungary will be launched in Europe later this year.

According to Honegg, the company is expected to close the year with sales of over 7,000 cars and around 140 buses, up from 5,820 cars and around 90 buses sold in 2010.

“The four major metros — Delhi, Mumbai, Bangalore and Chennai — contributed around 60-70 per cent to sales which has now come down to 50 per cent as the markets in tier III and IV cities are growing.”

To tap the potential the company is planning to open 15 new dealers every year mainly in tier II,III and IV cites and towns. At present the company has 30 selling points in the country.

Mercedes Benz also makes around 100 Actros trucks which are sold by one of its sister companies.

He said during the first half of 2011 the company sold 3,800 cars. Speaking on the bus business Honegg said the company is also in talks with state transport organisations. However, the present sales are mainly to private operators.

“For the present year, the targeted bus sales is around 125. However, it may close the year with sales of around 140 units. During the first half of the present year we sold around 70 buses,” he said.

The company is expanding its paint shop facility at an outlay of Rs 400 crore.