Date:14/04/2004 URL: http://www.thehindubusinessline.com/2004/04/14/stories/2004041400860200.htm

Back Daimler eyes 20% growth in sales

Our Bureau

Mr Suhas Kadlaskar

Kochi , April 13

DAIMLERCHRYSLER, makers of Mercedes-Benz luxury cars, expects its sales in India to grow by 20 per cent in 2004, helped by a robust economy and new models, a top company official has said.

"Our target for 2004 is 1,900 units compared with 1,581 units in 2003," said Mr Suhas Kadlaskar, Director, Corporate Affairs and Finance, DaimlerChrysler India Private Ltd.

Speaking to Business Line here, Mr Kadlaskar said the overall upswing in India's economy and recently introduced models such as the new `E' class, would drive the growth of DaimlerChrysler in the country.

A Mercedes Benz C-Class

He said the `C' class sedan would account for the maximum sales - 825 units - in 2004, followed by the E class (800 units) and S class (100 units). Imports of completely built units (CBUs) would be 100 units in the year.

Turnover of DaimlerChrysler India is expected to touch Rs 500 crore in 2004, up from Rs 434 crore in the pervious year.

The company is hopeful of maintaining profits in the ratio of last year, though the appreciation of the euro against the rupee is a cause for concern.

Asked about the possibility of Chrysler models debuting in India, Mr Kadlaskar said feasibility studies on the Jeep Cherokee and Grand Cherokee models are currently on.

"We have shown these two vehicles to our dealers and customers.

By the end of this year we will take a decision whether to launch them in India," he said.

During the year, exports of auto components from India to DaimlerChrysler, Germany, would be worth 80 million euros, up from 63 million euros in 2003.

The company has 25 suppliers of components in India.

Meanwhile, the `E' class running on bio-diesel extracted from Jatropha plant has reached Kochi, as part of a project undertaken by DaimlerChrysler to develop alternate and environmental friendly fuels.

The company initiated the bio-diesel project in August last year, in association with the Council for Scientific and Industrial Research (CSIR) and the University of Hohenheim, Germany.