Mercedes Benz to position itself as a price competitive luxury car maker in India

Monday 09 January 2012, 13:13 PM by Vikas Yogi

The second largest luxury car maker in India, Mercedes Benz, is implementing on its strategic plans to give tough competition to its rivals in the luxury car segment such as Audi and BMW. The cars in the MB portfolio are set to become more competitive in terms of price in the Indian car market whose demand is driven mainly by the price factor.

The market for hatchback and compact sport utility vehicles (SUVs) in India has lately witnessed a reasonably increasing demand. Realizing this fact, Mercedes Benz will be assembling its B-Class hatchback and M-Class SUV in the later phase of this year at its plant established in Pune. The cars will then become cost effective as cars produced locally bear lower tax rates and increase in the plant’s current capacity of 15000 units, will enable the luxury auto giant to reduce its unit costs.

Debashis Mitra, Director (Sales & Marketing), Mercedes Benz India, said at the 11th Delhi International Auto Expo 2012, ‘’We will strengthen our local sourcing to control costs and offer the luxury of Mercedes cars in the sub- Rs 25 lakh category’’. He also announced that the company is aiming to sell more than 25000 cars in the country in the coming five years which is expected to be manufactured in India.

Moreover, the company revealed that its dealer network will be further strengthened and its price positioning will be restructured for its series of forthcoming launches scheduled in the next three years. Of these, A-Class and GL-Class SUV will be launched in the Indian car market in the year 2013.