The auto major, which reported a 32 per cent growth in volumes at 9,003 in the last calendar year over 2012, also rolled out the 50,000th car from its Chakan plant in Pune.
Mercedes Benz currently churns out C, E, S, ML and GL class models from its Chakan plant, which has a capacity to produce 10,000 vehicles a year.
The Grand Edition comes close on the heels of the launch of the flagship S-class luxury saloon, which hit the market earlier this month.
"Touching the 50,000 cars marks the beginning of a next growth chapter for us. We are committed to the India story and the domestic market potential. We will also continue increasing our investments in the plant and infrastructure here," Mercedes-Benz India managing director and chief executive Eberhard Kern said in a release here.
Kern also said that the current capacity will be doubled by March this year adding, "We will soon commence local assembly of newer models, making the company 'future ready".
Commenting the Grand Edition roll out, Kern said, "the C-class Grand Edition embodies Mercedes-Benz's uncompromising style, design and performance."
The C-class remains one of Mercedes-Benz' best-sellers in the competitive entry-level luxury sedan segment with more than 19,000 units sold till date, Kern said.