Search the Internet          Tips  Sites: Finance, Investment

Mercedes-Benz revs up, to launch Chrysler range

BS Corporate Bureau

Mercedes Benz India Ltd plans to launch cars from the Chrysler stables in the country in 2002. MBIL managing director Jurgen Zeigler on Monday said the company is looking at importing completely built units of bestsellers like Chrsyler Concorde, Voyager and Chrysler Jeep Wrangler and Grand Cherokee.

During the course of this calendar year, the company plans to introduce cars like Mercedes Benz M class, Mercedes Benz CLK and Mercedes Benz SLK. He said these cars would be introduced after three months in the Indian market. "The new regulations require us to test out these models at the Automotive Research Association of India, Pune," Zeigler said.

The company will have to spend anywhere between Rs 1 million and Rs 2 million in testing out each model (and its variants) that it plans to import through the CBU route. "It will take some time before we meet the homologation norms spelt out by the government," he said, adding that the first CBU import of Mercedes Benz cars is expected around September this year.

"We will, on a limited basis, import one or the other model in each segment through the CBU route, where the market and volumes don't allow us to go in for assembly here in the country," Zeigler said.

"Over all, the company plans to launch 10-to-12 different models from its stable through the CBU route," Naresh Talwar, chairman of a Delhi-based Mercedes Benz dealership, said. The company has already acquired a blanket approval from the Foreign Investment Promotion Board to import cars from its global portfolio.

On convertibles, Zeigler said, "MBIL sees a market for convertibles in India. We are looking at each model in the Mercedes Benz stable for import. The hike in customs duty of CBUs has not altered out CBU plan in any way."

On whether the company will launch the Mercedes Benz A class, Zeigler said: "We have not given up the idea of launching the A class in India, despite the fact that the hike in customs duty may make the price fairly prohibitive."

The company is rather upbeat on its prospects during the course of the year. MBIL hopes to sell 1,500 cars in 2001, out of which 800 units will comprise the newly-launched C class, priced upwards of Rs 2 million (Delhi, ex-showroom). The company hopes to sell 100 units of S class and 500 units of E class this year. Besides, it plans to sell 100 cars through the CBU route, Zeigler said. Last fiscal, it sold 880 cars.

The company hopes to clock a 55 per cent increase in turnover this year. In 2000, it had posted a turnover of Rs 2.40 billion and this year, it hopes to record a topline in the range of Rs 3.50 billion and Rs 3.80 billion.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report