Mumbai:

The car will replace the existing S-320L, which is priced at Rs 62 lakh. The S-350 L will be positioned as the costliest car made in India though the pricing details are in the process of being finalised considering the benefits of the excise duty reductions in Budget 2003-04.

Following the excise duty cut, DCIL has revised downwards the tags of all other vehicles in its portfolio. The new E class, which was launched in November 2002, will now be cheaper by Rs 1.50 lakh and will cost Rs 32.37 lakh.

The prices of the other Mercedes models — C-180 petrol and C-200 Diesel — have also been reduced by an average of Rs 1.08 lakh. The C-180 will now cost Rs 19.87 lakh, while the C-200 CDI will cost Rs 23.16 lakh.

In a revision of its strategy, DaimlerChrysler has decided not to introduce any of its Chrysler models into India and will also bring in new Mercedes models as fully-built units through the completely built-up unit (CBU) import route. The first in the pipeline is the SL500 convertible and the S-500.

In 2002, DCIL sold 1,345 (1,488) cars, giving it a turnover of Rs 320 crore (Rs 334 crore). Its profit before tax last year was Rs 39 crore (Rs 41 crore), bringing its accumulated losses down to Rs 310 crore.

Last year DCIL reported a 4-per cent drop in turnover despite a 9-per cent drop in sales. Company officials say this is due to a change in product mix, with imports of CBUs giving better margins.

In a change of strategy the company has decided to concentrate on high-end products brought in through the CBU route which deliver up to 40 per cent value, and the company expects to sell about 1,500 cars this year.

They say that volumes fell in 2002 due to the fact that the C-Class was in its second year and E-Class volumes were down since it was getting ready to be phased out in November. The change in the product mix has helped the company maintain profitability despite the fall in volumes they said.