'We expect 2009 to be a flat year (in terms of sales) but 2010 should be a significant as we will also launch the much awaited E212 edition soon,' Aulbur said.

The company also plans to invest about Rs.150 crore in its retail chain over the next 18 months. 'This investment will be made in cooperation with our retail partners,' he said.

In the past seven months, Mercedes sold 1,630 units of which 770 are C-class cars.

Mercedes is aiming at expanding its presence from 25 cities next year. 'We will have a very dense network in India to cater to our customers better,' Aulbur said.

The auto major also plans to increase its headcount at its research and development facility in Bangalore from 300 to 400-500.

According to estimates, India's luxury car market will grow to 8,000 vehicles by the end of 2009, and Mercedes is eyeing a sizeable chunk of it.

'Our current market share is 36-38 percent, with increase in the buying capacity of people we expect it to surge considerably,' Aulbur said.

'We are betting big on India. We think India will grow and the country will spend.'