Roberto Mancini’s side were handed a difficult draw, with the defending Premier League champions set to face La Liga holders Real Madrid, Dutch outfit Ajax and Bundesliga winners Borussia Dortmund in Group D.
The Eastlands outfit, who failed to get out of a group containing Bayern Munich, Napoli and Villarreal last season, are looking to improve their performance in Europe this season.
And the City captain is confident his team-mate will be fully motivated for a series of testing games in Europe’s premier competition.
“It’s a great challenge and I do think we’re the kind of team that gets better when the challenges are greater,” Kompany told BBC Radio Manchester.
“It’s perfect for us. There won’t be any moment where we’re surprised.”
“That’s why you’re in the Champions League,” added the Belgium international, 26. “I thought it couldn’t much more difficult than last season, but there you go.
“The motivation will always be sky high and the atmosphere will be great in each of the six games that we have in the group.
“I know it’s all about how far you get in the competition, but I’d like to think it’s even better when you get to play against the best teams.”
City have conceded five goals in three Premier League games this season, but Kompany does not believe there are serious problems in Mancini’s back four.
“If you look at the goals that we’ve conceded, we’ve been very unlucky,” he added.
“The two goals against Liverpool were from set-pieces and Southampton scored from the only two chances they had in the game.
“If you change a little bit, you just have to adapt. The team have done a good job so far.
“We’ve taken seven points out of nine and we’ve won the Community Shield so it’s been a very good start.”
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