German luxury carmaker Mercedes- Benz today said it will increase its employee strength in the Indian research and development wing by up to two-third to 500 people by 2010.

The Indian subsidiary of the carmaker is also planing to launch a new variant of its E-Class sedans withing this year.

"Our R&D centre in Bangalore is the largest one outside Germany. It is fully integrated with our global operations. We are planning to increase the staff strength to between 400 and 500 by the end of 2010," Mercedes-Benz India Managing Director and CEO Wilfried Aulbur told reporters here.

Mercedes-Benz India currently employs 300 people in its R&D centre, he added.

The Bangalore R&D centre is engaged in activities like computer simulation, design, electrical and electronics and IT services related to vehicle development.

On its product launches, Aulbur said the company would launch a new E-Class sedan with multiple variants during the remaining half of 2009 to consolidate its position in the luxury car market.

Mercedes-Benz India today launched a special edition of its C-Class car, priced between Rs 28.46 lakh and Rs 31.30 lakh (ex-showroom Delhi), in both petrol and diesel variants.

The company plans to produce only 60 units of this special edition vehicle in order to maintain exclusivity.