"With the introduction of the technologically-advanced new C 250d, we further bolster our position and are confident of continuing its unmatched success in India," Mercedes Benz India Managing Director and CEO Roland Folger said in a statement.
The company is already offering the C-Class in C 200 (petrol) and C 220d variants and is one of its highest-selling models in India.
The C 250d is equipped with the company's advanced transmission system, 9G-TRONIC, which is used in other higher-end models like the Maybach.
"The overwhelming response for the new C-Class drove us to commence the local manufacturing of the C 250d simultaneously with its introduction in India. This key step is not merely a reflection of our localisation strategy, but also underscores our unsurpassed commitment of driving value for our customers," Folger said.
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He further said the company is confident that the local production of the C 250d will create high customer interest with additional value proposition and increased availability.
The company plans to add 12 new products in its line-up this year to strengthen its position as the top luxury car maker by volume in India. It had sold a record 13,502 units in India last year compared with 10,201 units in 2014, a jump of 32 per cent.
said the company already has the largest number of SUVs in its portfolio with seven models which include the GLA, GLC, GLE, GLS and the AMG GLA45, AMG GLE 43 and the AMG G 63.
On the performance of the sports car and performance brand Mercedes-AMG, he said both the divisions had double- digits growth in 2016 along with the Dream Cars portfolio and the new generation cars.
On the impact of the GST implementation on the luxe car industry, Folger said "any additional tax by whatever term it is referred to, will defeat the very purpose of GST, wherein all taxes are supposed to be subsumed into GST rate.