Mercedes-Benz plans to launch mid-size, small SUVs

The German luxury maker Mercedes-Benz today said that it will launch mid-size and smaller SUVs, which would help the company to fill the gap between its offerings and its competitions'. The company also said, the year 2014 will be "Year of Excellence" and will see more launches.

"We have a gap in offerings, due to lack of mid-size and small SUVs, compared to our competitions,” said Eberhard Kern, managing director and CEO of Mercedes-Benz India, after launching new S-Class series in Chennai.

He added the company is working on these vehicles and in the next two years it will be rolled out. Kern was responding to a question on the steps, which the company is taking to re-gain its market leader position in the luxury car segment in India.

Profitability and sustainability will be the key for the company, besides looking at numbers, he said. Last year the company sold a little over 9,000 cars. Almost 20% of the sales came from A and B Class series of Mercedes-Benz.

According him, the second half growth was more than industry's (luxury segment) and even high compare to competitions'.

The company reported an overall growth of around 32% growth in 2013, and most of which came on the second half of the year, which saw 45% growth compared to last year.

He attributed the growth mainly to new products, which were launched between May and July. Overall in 2013, the company launched eight vehicles in India.

g2013 was the year of offensive and the year 2014 will the Year of Excellence, with new expectations, experience and lots of opportunities,” said Kern.

One of the focus will be manufacturing. The company is in the process of investing around Rs 250 crore to double its capacity from the current 10,000 units a year at its Pune facility. The company expects to complete the investment programme by first quarter of this year.

The expansion is to support the new launches, said Kern, who noted five models are currently produced in this facility.

On the new S-Class Series, he said, the year started with S-Class, while lot more will come. "This product will be on top of the Pyramid and no strip down model for this vehicle".

"Its an emotional appeal with latest technology, its the best luxury vehicle in the road, said Kern.

Lutz Regelamann, head of global product management, S-Class and Roadsters, added since 1903 this series was set as benchmark for innovation and luxury. "It is the icon of motion of whole automobile industry".

Kern said, the company launched this product globally in October 2013 and so far booked around 30,000 units.

"In India, so far 125 vehicles were booked," he said.