German luxury car maker Mercedes-Benz Tuesday launched its third generation sports utility vehicle M-Class priced at Rs.56.9 lakh (ex-showroom Delhi).

"At the start of this year, we had promised to introduce exciting new models into the market. We are proud to present today the new M-Class," Peter Honegg, managing director and chief executive, Mercedes-Benz, said.

"We are confident that the quality drive and the luxurious experience it can deliver will be a big hit with the customers and it will be warmly received," he said.

The off-roader comes with technologies such as customised settings for engine performance, automatic transmission, anti-lock braking system, electronic stability programme and electronic traction system.

The company has so far sold 1,500 units of the vehicle, launched in 2008, in the country. The latest model has a price cut of nearly 15 percent from its previous editions and will take on BMW X5 and Audi Q5.

Another variant of the new vehicle, the AMG edition of 100 units, priced at Rs.66 lakh (ex-showroom Delhi) was completely sold off through pre-bookings even before the launch.

According to Honegg, the company expects a boost in sales after the launch of compact segment brands such as A-Class and B-Class enters the market. He, however, did not divulge any price details or the launch time of the vehicles.

"We expect to become number luxury sellers of luxury cars in India by 2020, the growth will get a boost when the compact models enter the Indian market," he said.

The company sold around 7,500 units in 2011, which was a growth of 30 percent over 2010, but in 2012, it expects to grow at a much slower pace of 20 percent due to the existing market environment.

Mercedes-Benz was the second-largest luxury car seller in 2011 with sales of around 7,500 units. The market was led by BMW with sales of over 9,400 cars. Audi was the third-largest seller with 5,511 units.