Mercedes eyes small cars to rev up volume

Alka Kshirsagar Updated - November 15, 2013 at 10:08 PM.

Mercedes-Benz India is betting big on compact cars and utility vehicles to drive salesin a market that has “lots of catch-up potential”. The luxury carmaker is set to unfold a small-vehicle offensive in the Indian market over the next couple of years.

Among those almost certain for an Indian debut — some as early as next year — are the CLA, a sedan below the C-Class, the GLA, a compact SUV, and the GLK, a mid-size SUV.

The CLA, launched globally in May, will be Mercedes-Benz’s answer to the BMW 1 Series that recently debuted here. The GLA, showcased to the world in September, will hit Indian roads soon. It will take on competitors such as the Audi Q3 and the BMW X1.

In addition, the left-hand-drive GLK is nearing the end of its lifecycle. The new one, due in 2015, will also have a right-hand-drive version, making an India launch imminent.

“The products need to be Indianised, and we have invested in R&D to develop them,” says Mercedes India MD and CEO Eberhard Kern. The engines need to be tweaked for fuel quality, and ground clearance has to increased, he said, adding the CLA for the Indian market is under development. The German luxury car maker is already well into an expansion programme that will double its production capacity — 10,000 units a year at present — by the first quarter of 2014. A significant part of the newly created capacity will be dedicated to smaller passenger vehicles.

Comparing India’s below 2 per cent share of luxury cars against Russia’s 6 per cent — both 2.5 million cars a year — Kern is convinced that “India has a lot of catch-up potential.”

The last Mercedes product to enter India this year will be the super luxury roadster SLK-55 AMG, in early December.

The New Year will be flagged off with the flagship S-Class in a new avatar. The car, which will be assembled locally, will be offered in both petrol and diesel versions, Kern said.

Published on November 15, 2013 16:38