Mercedes-Benz’ new strategy entails bringing almost its entire car portfolio to India in the next two-three years.
This, it hopes, will help it wrest back the top position in the luxury car market, which it lost to BMW in 2009.
Come Diwali, the company will launch the B-class, which opens a new segment in the luxury car market of large hatchbacks, or ‘sport tourers’. Initially, a petrol variant will be launched at about Rs 23 lakh, sources close to the development said. The diesel variant launch will be delayed to 2013 due to an engine supply shortage.
“Mercedes is working on an array of volume models on the A/B Class platform to take back the top position globally by 2020, as stated by Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG in February. About €1.2 billion is being invested at the Rastatt plant in Germany for the new A and B-class range,” an industry insider said.
Next year will also see the A-class hatchback in India, apart from an extended wheelbase variant of E-Class luxury sedan.
Following this, in 2014, Mercedes plans to bring in the GLA compact SUV soon after its global premiere. This is another key volume model for the German brand as it will hope to replicate the success of the X1 and the Q3.
A-Class sedan
In 2014 the company is expected to introduce its new entry sedan model, based on the A-Class, into the Indian market. Shown as the CLC coupe model recently in China, this is expected to be the new entry sedan model in Mercedes’ luxury car range worldwide (below the C-Class) and would compete with BMW’s 1-series and Audi’s A3 sedan. “This year will be tough for Mercedes as the Q3 has already given Audi an edge and BMW is expected to get a boost on the back of the new 3-Series launch later this month,” an industry expert said. Mercedes is likely to slip to the third position.
Besides, Jaguar Land Rover has also been gaining ground, and may see a jump in volumes as more models (apart from the Freelander 2) are assembled locally. New competition is also expected from the Japanese, as Toyota’s luxury brand Lexus debuts in India next year.
In 2011, the domestic luxury car market was around 22,000 units and had posted a 50 per cent growth.