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NEW DELHI: SUVs are powering the growth of Mercedes-Benz in India as the company's expensive off-roaders take the fancy of buyers looking to add muscle to their wheels. As much as a quarter of the company's sales in India are through SUVs, prompting the German car major to drive in its contemporary and entry-level GLA model.

Mercedes, which is traditionally strong in the sedan segment with its C, E and S Class saloons, has been beefing up the portfolio of its SUVs in India, considering the rising popularity of the vehicles among buyers. The market for luxury SUVs (priced above Rs 25 lakh) is about 9,000 units annually and is shared by Audi, Mercedes, BMW and Land Rover.

Mercedes' current range of SUVs starts from around Rs 55 lakh (ex-showroom Delhi) for the ML Class portfolio, while the GL Class family is priced upwards of Rs 70 lakh. The top-of-the-line AMG variants are priced higher, with the iconic G63 AMG co mmanding a price of as much as Rs 2.5 crore.

Eberhard Kern, MD & CEO of Mercedes-Benz India, told TOI that the company expects action to continue in the SUV category as companies add newer models. "India is very similar to the US where there is a very high affinity for SUVs. Indians love SUVs as it gives them a good road presence, considering the traffic situation. Also, the high-ground clearance helps them have a comfortable drive in poor road conditions."

For Mercedes, the share of SUVs to total sales has been rising steadily. In the first half of 2014, sales of its SUVs have grown by 84% and now contribute 25% to overall volumes (17% in the first half of last year). "We are happy with the response we are receiving to our SUV portfolio. The response to the new GL Class and ML Class has been overwhelming and that has now prompted us to launch the AMG variants of these models. With the introduction of the GLA Class, we will further strengthen our SUV portfolio."

The company ha s already opened bookings for the GLA at a tentative price of Rs 38 lakh, though the car is likely to be priced lower when it gets launched on September 30. The GLA will help Mercedes compete effectively with close rivals and compatriots - Audi and BMW - who have entry-level SUVs in the Q3 and X1 models respectively.The gradual strengthening of Mercedes' SUV portfolio will be a cause for concern for Audi, which has so far dominated the segment and has maintained its leadership in the overall luxury car category.

Mercedes has already decided to step on the gas in India and is doubling vehicle assembly capacity at its Pune factory, while more models are getting locally-assembled, including the CLA sedan, as it expects a second year of double-digit growth in 2014. The company sold 9,003 units in India last year at a growth of 32% and Kern said the new models and network expansion will help it register double-digit growth in 2014 too.