"We have initiated a study to identify the particular models for India but are yet to arrive at a firm decision on any particular model," Ziegler said. Meanwhile, Till Becker, outgoing president and CEO of MBIL said the company has put off plans to introduce models from Chrysler stables in India for price reasons.

"Despite having identified models from Chrysler stables as probable roll-outs for India, we have decidedto shelve the idea for the time being due to price reasons. For the present, we are looking at creating greater volumes with the E-class," Till Becker said.

The company had recently concluded a feasibility study and identified four models from the Chrysler stables for India. MBIL, Ziegler said, has launched two new top-of-the-line versions of its existing E-class -- V6 E240 petrol and E220 CDI diesel as part of its strategy to expand its portfolio here.

The vehicles would be available commercially from the second quarter of 2000. "The prices would be announced then." Ziegler further stated that the existing E-class will continue to be produced despite the introduction of the new models. "But we feel that over the long run a lot of demand in future would be for the new models."

MBIL has sold 1000 units of its E-class in India in 1999 calendar year and expects sales to grow 20 per cent this year. MBIL has recorded maiden profit of Rs 2.6 crore in 1999.

Ziegler said the company at present is in anexcellent liquidity position and is totally debt-free.

"For the financial year ended March 1999, the company has recorded profits and DaimlerChrysler AG, the parent company, has extended full financial support and demonstrated long-term commitment to India. The company's pre-owned car business, which commenced in 1999, has been successful, he said, adding that it is expected to grow in 2000.

Daimler-Chrysler, he said, has for the present decided not to hike stake in MBIL beyond the present holding of 86 per cent. The company is also not in favour of selling off the around 10 per cent stake it holds in Telco. It will also hold on to its 16 per cent holding in the Pune-based Bajaj Tempo Ltd (BTL). "There is no move towards altering our equity holdings in India. These are strategic investments, made purely for financial reasons, are we intend to hold on to them," he added.

Regarding MBIL, Zeigler said, "the question of altering the present holding does not arise as neither is Daimler-Chrysler planning tobuy out Telco's stake nor is it infusing fresh capital into the venture. Moreover, if does not really matter to us whether it is 86 per cent owned by us or 100 per cent."

MBIL was floated as 76-24 venture with the German luxury car maker Daimler-Benz (now Daimler-Chrysler) controlling the majority stake. However, later the foreign partner hiked its stake with fresh infusion of capital.It may be recalled that Mercedes Benz is restructuring its Indian operations in line with its overseas production bases in a bid to make MBIL more efficient. Under the programme, the entire administrative set up was rearranged to suit the market, size and cost situation of the company.

Besides, the company has also shifted its units to a new location and plans to house both the administrative division and production under the same roof. The new plant will also be in Pune. It is a new installation where the whole administration and production has been put together for the right climate and understanding.