THE A-class model changeover in July is one of the reasons why Mercedes-Benz new car sales have fallen by 4% during the first seven months of the year. But executives say the new model has met with a 'great response' prior to its September launch and expect to meet full-year sales targets for all of its models.

Worldwide, Mercedes-Benz sales totalled 682,900 units for 2004 so far this year, a drop of 4% from the same period last year.

Dr Joachim Schmidt, member of the Mercedes Car Group management board responsible for sales and marketing, said: 'The sales figures for all Mercedes-Benz production series remain on track for the year as a whole. We expect sales of the new A-class to increase substantially during the rest of the year.

What's more, we will have a strong basis from which to achieve further medium-term sales growth once the model changeovers are completed and our expanded range of models is fully available.'