German car maker Mercedes Benz intends to regain its top ranking in the premium luxury car segment. Currently it faces stiff competition from BMW in India that now leads the segment with its latest product range in the country. The company also faces stiff competition from new entrants like Jaguar and Audi in India that are here to share the market space.

"Last year we led India's luxury car segment with a 46 percent market share. This year Mercedes is somewhat behind BMW, but we are hopeful of gaining momentum in the coming days," Wilfried Aulbur, managing director and chief executive of Mercedes-Benz India said. Mercedes already has its dealerships in Chandigarh and Ludhiana and recently opened another dealership in the region due to high demand for luxury cars in Punjab. According to the official figures, Mercedes sales in Punjab rose 48 percent to 300 in 2008 from 202 cars in 2007.

Mercedes launched its facelifted model of E-class in India and according to Aulbur, the company has not decided anything so far about launching its A-class model in India. He said that the decision will be taken when the time is appropriate.