GERMAN carmaker Mercedes Benz AG predicted a sales "boom" for 1997, as it yesterday disclosed that its sales for the past year would total 77 billion deutschmarks (£34.9 million), up from 72 billion D marks in 1995.

For the first time in its history MercedesBenz sold more than 640,000 passenger cars, more than 370,000 of which were exported the group said in a statement. Last year it sold 590,200 cars.

In releasing the year end estimates, Mercedes Benz attributed the sharp rise in sales to the success of its E class car, which has become the group's highest volume seller.

"Mercedes Benz is clearly on course for growth and success," the chairman, Mr Helmut Werner said, while a statement boldly predicted a "Mercedes boom" in the coming year.

Mercedes Benz added that its 1996 earnings would be up on the previous year, although it gave no figure. Net earnings in 1995 added up to DM2.275 billion.