The introduction of the Goods and Services Tax (GST) next year is likely to reduce the prices of Mercedes Benz cars.

Mercedes-Benz Malaysia Sdn Bhd vice president of sales and marketing, Kai Schlickum, said the company was still working on the pricing.

"The price reduction could happen but we're not sure yet," he told Bernama after launching the new Mercedes-Benz C-Class models -- C200 and C250 -- here today.

Schlickum said this when asked on the likely impact of the introduction of GST from Apr 1, 2015 on the prices of Mercedes Benz cars.

On Mercedes Benz's current market share, Schlickum said it was approximately 34 per cent.

The Malaysian Automotive Institute (MAI) had said early this month the GST should stimulate demand for vehicles as the prices would be reduced due to the abolishment of the 10 per cent sales and services tax then.

Meanwhile, in a statement today, Mercedes-Benz said, through Mercedes-Benz Financial, it would launch a hire purchase balloon offer for the C200 and C250.

"Based on the hire purchase balloon, car enthusiasts looking for an upgrade or new buyers can own, for example, the C200 Avantgarde, which is priced at RM285,888 for RM100 per day with a 20 per cent downpayment and 60-month tenure," it said.