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NEW DELHI: Mercedes Benz has said that the luxury car market in India will grow faster in 2015, after a poor single-digit growth last year, on improved economic conditions and new model launches. High duty and taxes, however, remain one of the key concerns for the industry.

The company, which eyes a double-digit growth for itself for the second year in running, said that demand is picking up in the luxury car business especially as companies drive in new cars while introducing attractive financing and service schemes for buyers.

"The demand for luxury cars was slow last year as overall industry volumes moved up to 33,000 units from around 32,000 units in 2013," Eberhard Kern, MD of Mercedes Benz India, told TOI here. "However, with the entry of the Modi government last year, the economic environment has changed and we are seeing a pick-up in demand, including for lifestyle and performance cars like AMG versions."

The company rolled out two new cars on Wednesday - the 2015 CLS-Class and the E-Class Cabriolet - priced at Rs 76.5 lakh and Rs 78.5 lakh (ex-showroom, Delhi) respectively.

Kern said the company has seen a 70% growth in the demand for expensive performance cars, though their share in overall sales is very small.

Mercedes sold 10,201 units in India in 2014 at a growth of 13%, and is now closely chasing compatriot Audi for leadership in the luxury space. The company has plans to launch 15 new cars in India this year.

Rival Audi is also hopeful of maintaining growth this year and has lined up a series of new models for India. These may include the A3 hatchback which will be part of the 10 new cars that the company drives in.

BMW, the third of the famous German luxury trio, is also hoping that its troubles will end in 2015 as its volumes pick up after falling for the last two years.

The company, which sold 9,375 units at its peak in 2012 before its volumes started slipping to finish 2014 at 6,409 units (7,327 in 2013), is hoping for a turnaround this year and return with positive numbers.

"A new era is coming as far as our business is concerned," Phillip von Sahr, president of BMW group India, has said. The company is confident of registering a growth in numbers this year as it embarks on a fresh pitch of going aggressive with its mainline products like 3- and 5-series sedans and SUVs like X3 and X5.