Mercedes to launch A, B Class cars in India in 3-4 yrs
German premium car maker Mercedes Benz today said it will bring in its A and B Class cars into India within next 3-4 years and plans to assemble them locally to make the vehicles price competitive in order to regain its lost numero uno position from compatriot BMW.
The company also said it has started assembling the engines and transmissions of C and E Class luxury sedans at its Chakan facility in Maharashtra to escape the higher 30 per cent customs duty following the new norms on completely knocked down (CKD) units in the 2011-12 Budget.
"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," Mercedes Benz India Managing Director and CEO Peter Honegg told reporters here.
The company currently does not offer any product in a price range where models such as BMW's X1 exist, he added.
BMW assembles its sports utility vehicle X1 at its Chennai plant and sells the SUV with a starting price of Rs 22.40 lakh (ex-showroom, Delhi).
When asked about the company's plans for the future, Honegg said: "We will bring in A and B Class cars into India in the next 3-4 years." He added the company at its headquarters in Germany was mooting whether to produce the vehicles at a local level.
"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."
At present, Mercedes-Benz India assembles C, E and S Class luxury sedans at its Chakan unit, which can produce up to 10,000 units annually on two shifts. The company's cheapest offering in the country is C Class at a starting price of Rs 25.48 lakh (ex-showroom, Delhi).
The price range of E and S Class cars starts at Rs 39.70 lakh and Rs 84.34 lakh (both ex-showroom, Delhi) respectively. The prices will go up further from May 5 by 1.5-2 per cent to offset the impact of rising input costs and adverse currency fluctuations.
For the second consecutive year, Mercedes Benz lost its leadership position in the Indian luxury car market to BMW, which sold 6,246 units in 2010 compared to 5,819 cars sold by Mercedes Benz.
When asked about the impact of revised duty structure for CKD units in 2011-12 budget, Honegg said: "We have started producing the C and E Class cars complying with the 10 per cent customs duty."
The company is, however, producing the S Class by paying 30 per cent customs duty, as the car will continue to come with pre-assembled engines and the new lot of the cars produced in April will hit the showrooms in the next 4-6 weeks, he added.
The company also said it has started assembling the engines and transmissions of C and E Class luxury sedans at its Chakan facility in Maharashtra to escape the higher 30 per cent customs duty following the new norms on completely knocked down (CKD) units in the 2011-12 Budget.
"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," Mercedes Benz India Managing Director and CEO Peter Honegg told reporters here.
The company currently does not offer any product in a price range where models such as BMW's X1 exist, he added.
BMW assembles its sports utility vehicle X1 at its Chennai plant and sells the SUV with a starting price of Rs 22.40 lakh (ex-showroom, Delhi).
When asked about the company's plans for the future, Honegg said: "We will bring in A and B Class cars into India in the next 3-4 years." He added the company at its headquarters in Germany was mooting whether to produce the vehicles at a local level.
"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."
At present, Mercedes-Benz India assembles C, E and S Class luxury sedans at its Chakan unit, which can produce up to 10,000 units annually on two shifts. The company's cheapest offering in the country is C Class at a starting price of Rs 25.48 lakh (ex-showroom, Delhi).
The price range of E and S Class cars starts at Rs 39.70 lakh and Rs 84.34 lakh (both ex-showroom, Delhi) respectively. The prices will go up further from May 5 by 1.5-2 per cent to offset the impact of rising input costs and adverse currency fluctuations.
For the second consecutive year, Mercedes Benz lost its leadership position in the Indian luxury car market to BMW, which sold 6,246 units in 2010 compared to 5,819 cars sold by Mercedes Benz.
When asked about the impact of revised duty structure for CKD units in 2011-12 budget, Honegg said: "We have started producing the C and E Class cars complying with the 10 per cent customs duty."
The company is, however, producing the S Class by paying 30 per cent customs duty, as the car will continue to come with pre-assembled engines and the new lot of the cars produced in April will hit the showrooms in the next 4-6 weeks, he added.
[Source:economictimes.indiatimes.com]
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