Mercedes To Introduce C-class and E-class Variants With Smaller Engines

Mercedes Benz India launch projects for the Indian luxury car market include C Class and E Class diesel variants for the next two years. Mercedes expect to formulate a smaller diesel engine than the presently available 2,500 cc diesel engine for the C Class and E Class. The move would guarantee that the company takes on corresponding models from BMW and Audi that run on 2,000 cc diesel engines, and in turn, this would hike sales.

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Mercedes E-Class

Managing Director and CEO, Mercedes-Benz India, Peter Honegg said, “We have to think about basic versions with smaller diesel engines for the Indian market. They will help us get the prices down with lesser gadgets on offer. However, at the end of the day, customers are going to only move up the ladder. We expect the size of the luxury car market to grow ten-fold to 200,000 cars in the next ten years.”

The state of affairs can be understood better if one puts BMW sales strategy for the Indian car market in perspective. BMW India trades ‘corporate edition’ diesel variants fitted with a 2,000 cc diesel engine. This admits the 320d and 520d which bestows towards almost half the sales raked in by their three series and five series as per dealer feedback. The 2,000 cc diesel engine variants in the three series and five series are equipped with lesser instrumentation, offer lesser displacement, and are deprived versions of the standard BMW three series and five series models.

Mercedes-Benz India will be introducing the company’s smallest SUV, the GLK-Class SUV in the coming 18 months, and will be in competition with the BMW X3 and Audi Q3. The BMW X1 will go uncontested as Mercedes Benz doesn’t have a smaller SUV platform. In 2010, Mercedes Benz India traded 5,819 cars, and wishes to better the sales figures by 30-50% in 2011. Q1 and Q2 trades for Mercedes Benz in the Indian car market reported for 2,402 cars, which scores an 80% sales growth for the corresponding period in 2010. The new growth would certainly add an angle to the contest between the German triad that dominate the Indian luxury car segment.

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