The German-US automaker, which sources about 20 per cent of its components from the country, said it is relying on the Indian industry's high product quality and low price.
"Our sourcing from India has witnessed a compound annual growth rate of 20 per cent over the years and it will significantly go up in the coming years," DaimlerChrysler Indian operations chief Wilfried Aulbur said.
Aulbur said DaimlerChrysler is serving all the major markets through a group of Indian component makers and is looking at developing its vendor base in the country.
"Component sourcing from India is already the largest in South and South-East Asia and it will grow higher than the current level of 20 per cent," he said.
The India chief said out of the total sourcing at present from the country, components account for 70 per cent with the remaining being services.
Aulbur said the company expects the market for high-end products in India to grow at a rapid pace as a direct effect of the buoyant GDP growth rate. India expects to clock a 9 per cent gross domestic product growth rate during the 11th Five-Year Plan, starting next year.
The company recently said it plans to set up a new plant in India which could come up in and around Pune where it already has a manufacturing facility.
"The growth provides us with opportunities for increased business in India and we have reacted to it by introducing our range of trucks here," Aulbur said.
Asked about plans to introduce buses in India, he said the company has been looking at the segment but there has been no decision as yet.
The automaker, which sold 1915 units in 2005, expects its sales to grow at 15-20 per cent over the next few years.
DaimlerChrysler, which sells the Mercedes Benz brand in India apart from tippers in the off-highway commercial vehicle range, sold 1,915 cars in 2005 which included 829 units of the 'C Class', 825 units of the 'E Class', 140 units of the top-end 'S Class' while the rest were CBU models.
On the commercial vehicles side, the company has already sold around 50 units of the off-highway tippers, mainly used for mining.
