Mercedes-Benz India to Launch Sub-Rs 20 Lakh Car
The German automaker, Mercedes-Benz which has launched B-Class at Rs 21.49 lakh (ex-showroom, Delhi) some days back, is now aiming to introduce some more low priced models in India to regain its number one position in the Indian luxury car market. The popular compact hatch A-Class might be one of those vehicle which will be Sub-Rs 20 lakh. Moreover the company aims 40 percent of its product range to be priced below Rs 25 lakh in the coming next 5-10 years and is aiming to invest Rs 250 Crore on new products till 2014.
Speaking with reporters Mercedes-Benz India's MD and CEO, Peter Honegg said, "Yes, we are thinking in this direction," and giving his take on reporter's question about the possibility of introducing a car in Sub Rs 20 lakh, he said, "I will not eliminate the case that we will have a car below Rs 20 lakh,"
Commenting on the company's future plans, he said:"In the next 5-10 years, 40 percent of our new models will be below priced Rs 25 lakh... The premium segment, which is in the range of Rs 20 lakh to Rs 30 lakh, is witnessing good growth in India, while the luxury segment above that is flat."
"Globally our target is regain the number one position by 2020. In India, we will be fighting for number game much ahead of it. By 2015-16, we will have the entire range of products from premium to luxury in India and that is when we will look at competition again," Honegg said.
So all this suggests that the company is now planning to play on the pricing strategy to regain its position from BMW that overtook them in 2009.