[issigonis]

>>>
Today's ( 23rd) BS carries an article on the plans of the three Teutons (Audi, BMW & Daimler Benz) to gain market share in the growing affluent segment of the Indian car buying population ( cars priced INR 20 l and above). It further says that the 1Series might be rolling on India's roads as early as early next year ( I am not considering the X1) with the A3 also being considered, respectively.
Hurray if these were to come true soon. In any case we are in for interesting times. This was bound to happen as the more upmarket ( read A6/5/E and above will have limited numbers to flaunt, given our economic condition.
Regards
issigonis

[AlphaKilo]

Originally Posted by issigonis

>>>

I won't be surprised to see the 1er and the A3 crossing swords with each other in battleground India, maybe in the next couple of years.

For the hardcore Bimmer fan, there might just be an inline six turbo with -touch wood -hydraulic steering to keep the image going.

Regards
issigonis

Originally Posted by vb-san

Why is it linked to the Mini? Especially with the fact that the 1 is more of a proper 5 seater hatchback.

Issigonis sir, can you please quote the reference(a link may be!), for the news from BS. Thanks.

Vb-san sir, I accept 1 er is a different car against a Mini, but if you can remember we had this discussion before, and there was also a quote from BMW india head that they have no intentions of bringing the 1 for now(Which of course might change in future). And given the fact that there could a mini countryman on its way to us, which is a proper 5 seater, why do they need a 1 er here? But on the other hand, if they even bring in the 1, where will you place it? above mini - not possible! too costly. Below mini - not possible, will spoil the 1 image. Unlike the B-class, 1 er is more like the golf/A class or the A 1. Moreover, as the Merc India head says, if you have to bring in the entire range of cars, you need that market demand and local suppliers, who could produce the quality spares necessary.

Speaking to The Hindu, Mr. Honegg said Mercedes-Benz India was prepared to produce the new B-Class in the country. With regard to impact of the weakening rupee, he said it was severe and resulted in the prices of cars being increased twice this year. As a measure to cut costs, the company was adopting various measures, including advising its executives to travel Economy class and restrict official travel wherever possible.
To a query on when Mercedes-Benz would bring its entire range to the country, he said it was poised to do so by 2016. Noting that it was on course, he said most of the cars would be available by 2014. The right-hand drive version of GLK, its SUV, would be the highlight in 2016. Queried if the company was planning to increase sourcing of components locally, he said it was keen, but a lot depended on the sales volume. The suppliers, he added, also looked forward to large orders.

The Hindu : Business / Companies : Mercedes unveils new B-Class

[vb-saan]

Originally Posted by AlphaKilo

Vb-san sir, I accept 1 er is a different car against a Mini, but if you can remember we had this discussion before, and there was also a quote from BMW india head that they have no intentions of bringing the 1 for now(Which of course might change in future). And given the fact that there could a mini countryman on its way to us, which is a proper 5 seater, why do they need a 1 er here? But on the other hand, if they even bring in the 1, where will you place it? above mini - not possible! too costly. Below mini - not possible, will spoil the 1 image. Unlike the B-class, 1 er is more like the golf/A class or the A 1. Moreover, as the Merc India head says, if you have to bring in the entire range of cars, you need that market demand and local suppliers, who could produce the quality spares necessary.

Since both Merc and Audi have plans to bring in the A-Class and A3 respectively, I don’t expect BMW to sit idle. And unlike the Mini, 1-series is more of a mainstream car. Definitely it will not be cheap, but atleast will open up the brand to a lower price bracket.

Just want to point out a few points from your post:

• The Mini Countryman is not on its way to India, it’s already on sale.
• The Countryman is a crossover, and its counterpart /competitor from the BMW brand is already on sale in India – the X1. Whereas the 1 is a proper hatchback.
• I doubt there will be any problem in placing the 1-series, because of the existence of the Mini brand. We already have examples of co-existence of multiple brands from the same group/partners (e.g.; VW/Skoda, Renault/Nissan)
• 1-series is not in the same segment as A1. AFAIK, internationally its placed against the A3 (A1 is indeed have VW Polo underpinnings).
  Overall, pretty interesting time ahead in the luxury segment. Very interested to see how the B-Class will be priced.

[AlphaKilo]

Originally Posted by vb-san

• The Mini Countryman is not on its way to India, it’s already on sale.
• Very interested to see how the B-Class will be priced.

1. My bad! thanks for pointing that out.

2. B, as of now will be CKD/CBU(not sure) but will be priced at 25lakhs. (source: The Hindu report in my earlier post)

I am bit confused, as Mr. Honegg says,

The car, to be initially imported, would cost around Rs.25 lakh, he said. In the long-run, the new-B Class would be produced in the country. “Only then can we keep the price around Rs.25 lakh” he explained, adding that the launch would be in September-October.

How could it be? With localisation, shouldnt the prices come down, if not too much atleast a bit? If they want to still keep it around 25 lakhs, I dont see Merc is going to notch up some numbers for their B. May be if they price their A properly(read: below or around 20lakh) might do some numbers.

[StarrySky]

Originally Posted by AlphaKilo

How could it be? With localisation, shouldnt the prices come down, if not too much atleast a bit?

Maybe Merc is absorbing some of the duties/taxes related to CBU/CKD to keep the initial prices at Rs.25L. But it is not sustainable in the long-term, which is why Merc is looking at localisation to price the car realistically at Rs.25L level.

[sgiitk]

I really look forward to the B Klasse and even more to the A Klasse. I guess this one passes the infamous Elk test!!

[rohanjf]

Mod Note : Please continue the discussion in the Mercedes B-Class Preview Thread.

Originally Posted by AlphaKilo

How could it be? With localisation, shouldnt the prices come down, if not too much atleast a bit? If they want to still keep it around 25 lakhs, I dont see Merc is going to notch up some numbers for their B. May be if they price their A properly(read: below or around 20lakh) might do some numbers.

My guess is that, MBIL has very thin profit margin on B-class if it is priced at 25L Rs. In future, the input costs will only increase, and with fluctuating economy, the profit margin will only get thinner. If the localization (local manufacturing, or at least assembling) is in place by then, MBIL will be able to continue with the same price tag and increase the profit margin too.