The company has launched the new C-Class with petrol engine and plans to launch the diesel variant of the car next year.
"The new C-Class joins the latest generations of the E and S-Class to create the youngest and most wide ranging saloon line up of any automaker globally," Mercedes-Benz Managing Director & CEO Eberhard Kern told reporters here.
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Terming the model as an 'important product' for the company, Kern said the company's strategy for India is on the right track and paying results.
The new C-Class comes with various features including higher ground clearance, long wheel base, cruise control and drive mode selector.
It also comes with seven airbags, tyre pressure monitoring system and infotainment system.
With this launch the company has achieved its target of launching ten cars in the Indian market in 2014.
Earlier this year Mercedes Benz had said it planned to launch about 10 new products in India in 2014 as part of plans to continue with the double digit growth that it witnessed last year.
So far the company has launched the new versions of its top-end luxury sedan S Class -- the S500 and S350CDI, armoured vehicle MGuard, SUVs GL63AMG and ML63AMG, along with Edition 1 of A and B Class, sedan CLA 45 AMG, CLS 350, E350 CDI.
It has also launched GLA Class and a petrol variant of GLA 45 AMG, to tap the fast growing SUV segment in the country.
So far in the first nine months of 2014, Mercedes Benz India has sold 7,529 units, up 16% from the same period last year.
The company had sold a total of 9,003 cars last year in India and is looking at double digit growth this year. It has expanded production at its Chakan plant to 20,000 units annually to meet growing demand in the country.
The luxury car maker is also looking to locally assemble the CLA sedan that would be launched next year.