Mercedes-Benz Thailand achieved better than expected sales performance last year which saw the firm hold its position as the best-selling luxury carmaker for the ninth consecutive year.

Alexander Paufler (left), president and CEO of Mercedes-Benz Thailand, joins Stephan Moebius, vicepresident for sales and marketing to introduce thenew S-Class yesterday in Bangkok. The sedan sells for 10.999 million baht for the top model.

Mercedes-Benz took half of the luxury car market, accounting for 3,850 of the total of 7,711 luxury vehicles sold locally last year.

The company's car sales in 2009 rose by one percent year-on-year. Its main rival in the field is BMW.

"Despite the global recession in 2009, we did a very good job in stock management, avoiding brand-damaging discounts and staying within budgets in a crisis where nearly everybody discounted extensively," said Alexander Paufler, president and CEO of Mercedes-Benz Thailand.

Last year's sales were an exceptional effort in a difficult year, he added.

The industry was hit hard when the downturn extended into 2009 making many car companies, including Mercedes-Benz, pessimistic, he said.

The carmaker feared it would only sell 3,200 units last year after monthly sales in January and February barely exceeded 200 units. But the company and its dealers took action to improve the situation, he said.

Operations were streamlined and production volumes made more flexible to match customer demand. Other responses included better product management, faster communications with dealers and improved services.

Sales started recovering in March, when Mercedes-Benz sold more than 800 vehicles. They have steadily improved since then, he said.

"We are delighted to hold the leadership position not only in the overall figures but also as the leader in each of our main categories," said Prof Paufler.

He said the luxury market in 2010 would perform at the same level as last year, with sales ranging from 7,000 to 7,500 units.

Local car companies are optimistic about sales this year, but Prof Paufler said political tensions and foreign exchange vulnerability would weigh on the economy.

But he said Mercedes-Benz should sell about 4,000 luxury cars this year.

The company will continue and step up "triple-trust" programme this year aimed at enhancing employees' confidence in the organisation, customers' faith in products and services, and dealers' trust in the brand, procedures and management.

Mercedes-Benz starts this year with the launch of two locally built models: the E300 Avantgarde saloon and the new generation S-Class.

The E300 Avantgarde will go on sale today and comes with a 2,996cc V6 engine and a seven-speed automatic transmission. The model is priced at 4.99 million baht.

The second model to be launched is the new-generation S-Class. The model comes with three specifications: the S300 L costs 7.79 million baht, the S350 CDI Blue Efficiency L is priced 7.99 million baht, and the S500 L sells for 10.99 million baht.