Mercedes to bring A and B-Class cars to India

Mercedes-Benz India may cry out loud that it�s into the numbers game, but the company is surely feeling the heat. German compatriots BMW and Audi have become a major headache for the company which was mostly unrivalled in India only a few years ago. M-B thus is strengthening its lineup in India to cover every segment and add some more numbers.

The company has officially said that it�s planning to bring its A and B Class cars into India in the next 3 to 4 years. M-B India plans to assemble the cars locally to keep the costs low and volumes high. �We will bring in A and B Class cars into India in the next 3-4 years� said Peter Honegg � Mercedes India MD and CEO.

As a result of the recently introduced new CKD norms, the company has also started assembling the engines and transmissions of the hot selling C and E-class cars in India to save the extra duty and keep the costs low.

Mr. Honegg was very specific on the need to increasing localisation to stay competitive in a market increasingly dominated by BMW. �We do not have enough locally assembled products in India. My current portfolio does not allow me to compete with my competitors at this time. If I do not produce these (A and B Class) cars locally, I can�t get the numbers. We will be able to compete (with BMW) only when we produce (the cars) locally�the decision to produce them locally will be taken by Germany� Mr Honegg said.