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- Feb 22, 2024
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The Indian subsidiary of luxury automaker Mercede-Benz is keen to push for local assembly of the compact products A-Class and B-Class to keep the pressure on rival BMW that will launch the hatchback 1 Series in India next month.
Mercedes-Benz India that was trailing rivals Audi and BMW in the past couple of years, took the lead in July 2013 with sales of 810 units, riding significantly on the sale of A-Class and B-Class. Audi India sold 705 unit in July while BMW has refused to share its figures.
With the BMW Series 1 lined up and Audi introducing the Q3 S, Mercedes-India needs to combat with the hatchbacks till the new generation sedan CLA and small SUV GLA are launched sometime in 2014 and 2015.
Mercedes-Benz India managing director and chief executive officer Eberhard Kern will travel to Stuttgart in Germany in two weeks to speak to the Mercedes-Benz board on the issue. If the proposal of local assembly is delayed due to lack of kits following high global demand for the two cars, Kern will impress upon his bosses the need for greater allotment of A-Class and B-Class for India.
Kern will be accompanied by Mercedes-Benz India director (technical) and board of management member Piyush Arora to convince his bosses. Speaking to TOI, Arora said Mercedes-Benz India was prepared to assemble the A-Class and B-Class at the Chakan factory. At present, the facility near Pune assemble the C-Class, E-Class, S-Class, ML-Class and GL-Class.
"We are doubling the plant capacity and will obviously look to utilize it at the maximum capacity at the earliest," said Arora.
Kern acknowledged he would aggressively push for greater allocation of A-Class and B-Class vehicles during the board's meeting in Germany. "There is pressure from other markets too for larger allocation. But since India is on Mercedes-Benz strategic roadmap, I am optimistic of a favourable response," he said.
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