[TusharK]

According to a media report, Mercedes-Benz is working on two new models that will be positioned below the A-Class.

The A City will be an entry-level hatchback, while the A Adventure will be a crossover. Both cars are expected to debut in 2022.



It is said that the A City will be shorter than the current A-Class. It will be a 3-door hatchback with an interior optimized for space and a large tailgate.



The A Adventure will be the new entry-level SUV. It will essentially be a crossover based on the A City. It could get roof rails and plastic cladding on the sides. While it may feature a rugged look, it won't get all-wheel drive.

Source: Autobild

Link to Team-BHP News

[Reinhard]

What would be the target customer base for these offerings? And would the premium pricing associated with the MB brand be justifiable in the segment where it will enter? The only possible customers that I can think of - would be college going kids of the ultra-rich. Can't think of why anyone else will spend for a Mercedes to buy a small hatchback otherwise. No matter how financially rich they may be.

[JohaanTJ]

IMO it would be better if Mercedes decides against launching niche products like these in India. 3 door hatchbacks are not that popular here and if it's going to be priced above 20-25 lakhs(almost certain) then it's almost the perfect recipe for a sales disaster. Even if it packs a punch in terms of engines(most probably fwd though) it lacks the exclusivity factor of something like a Cooper S.

[landcruiser123]

Interesting. Way back in the day, the C-Class used to be 25 lakhs, E was 45, and S was 60. Gone are those days and now MB India will sell you a compact premium car for 35 lakhs?

Originally Posted by Reinhard

What would be the target customer base for these offerings?

Maybe they are targeting the Mini Cooper. That's the only logical reason I can think of. Wonder what sense these small models make in a world where pre-owned makes a lot of sense.

The only possible customers that I can think of - would be college going kids of the ultra-rich.

I don't think they'd buy it too. Those kids will want room for their friends and would be better off with a Skoda Octavia or Superb.

A Skoda will definitely attract lesser attention on a college parking lot compared to an MB.

[Eshan Joshi]

Originally Posted by Reinhard

The only possible customers that I can think of - would be college going kids of the ultra-rich. Can't think of why anyone else will spend for a Mercedes to buy a small hatchback otherwise. No matter how financially rich they may be.

They could honestly get a few of the Fiat 500 customers. Fiat sells a ton of them in Europe.

There is a huge market for city cars in Europe. They could easily sell a ton if they price it well.

But my only concern is about the Smart car brand owned by Mercedes. I thought that it was their job to make and sell small cars. What will happen to them? Will they be shut down?

Anyways , why do they need to expand like this ? They sold 2.1 million cars last year . They really don't need new models .Mercedes will slowly lose its exclusivity tag if they go forward like this.

[Sahil]

Quite surprised to see this! MB has not been very successful with any models below the C-class range whether in India or internationally. When the A and B class range were planned there were debates about MB devaluing the brand and on the other side the debate was that these lower models would act as volume churners for the brand. Much like how the controversial Cayenne launch was Porsches saviour. However in MB's case neither scenarios happened.
Hence, I am quite surprised that they are now planning to go further down a road they have never got much success from. Even the Smart brand never picked up.
In my opinion MB should focus on the existing range and it's transition to EV etc. Perhaps they can use Smart as a sub brand to go down the value chain much like they used the Maybach brand to go up the luxury chain.
Either ways I wish them luck, however I hope this is not a case of some new hot shot at the top job trying to make his mark with experimental strategies.

[omranga98]

Introducing Mercedes Poverty-Class

[koyomi_araragi]

So, this is basically a repeat of the whole C-class Sportcoupe idea that Mercedes tried in the early '00s and failed at, a cheaper 3 door version of a pre-existing model to act as the entry level. Although, this time I believe it will work out in favour of Mercedes especially in the Asian markets due to the addition of a crossover, it just makes financial sense.

But if the renders are accurate for the hatchback, it sure is a better (read: prettier) attempt than the butt-ugly Sportscoupe!



BMW will surely follow suit, Audi has no problem because I believe the Q1 have that segment covered.

[sramanat]

I fail to see what the target market is. I can hazard a guess though - woke and upwardly mobile youth who are environmentally conscious and detest driving a larger car (while being able to afford it). Remember Smart?

[DicKy]

I thought Merc and BMW had stopped trying to go more affordable, since they had to balance hard to maintain profit by volumes as well as the brand image.

But a 3 door hatch...

I know, three doors are all but dead in the affordable segment. But IMO, Merc seems to be targeting an urban EV car. Ofcourse it will have ordinary engines and hybrids on offer. But I feel it would be a perfect platform for a small city EV.
Though I don't necessarily share the same enthusiasm for the A Adventure.

Don't think it would make it to India. Unless maybe there is an EV version. Even if it comes, would be the A Adventure instead of the A City.
are these cars by any chance sharing platforms/engines with Renault-Nissan-Mitsu??

[ZenMaster]

I think they should just invest the money and the manpower into developing their electric cars more (or rather developing dedicated electric deivetrains instead of electrified models of their ICE cars.)

This is not just worth it. I see such cars being sold only in European countries and that too mostly in France, Italy etc.
It would be a big fail in India and would only help in diluting the Luxury image Mercedes has.

[ajmat]

I do recollect Ola Kallenius stating

“We will adjust the portfolio towards the highest pockets of profitability,” Mr Källenius*said, adding that Mercedes was “not going to chase volume” in lower-margin compact segments and that “we are prepared to eliminate models that we don’t think meet the profitability targets”.

Link

[voldemort]

A few months ago on this forum I read that MB would reduce its focus on entry-level cars

Link (Mercedes to reduce focus on entry-level models like A & B-Class)

Now they changed their minds? Doesn't make sense.

As typical of the brand, I expect it to be overpriced.

I'm not even sure if I'd want to buy a small Mercedes. I wish they reduced the price of their existing lineup instead of coming up with new entry level models; current C class is more expensive than what we paid for our W212 E class about 5 years ago.

And if I'm considering an E class now, a Porsche (a rung or two up, in my mind) brochure would also be on the table, for which I'd be grateful to Mercedes

[GTO]

Man, I think the A-Class itself is pushing things in terms of what the hallowed marque stands for. It looks good & has premium quality, yes, but it is damn small & cramped. Will be quite dangerous to venture into the territories below. Reminds me of attempts like the Audi A3 = no offence to any A3 owners, but I genuinely cannot figure out why anyone would buy that car when you had a superior Octavia on sale at a lower price?! Might be recollected that Audi slashed the A3's price by 5 lakhs, and it still didn't move! Not that it was much of a success internationally (related link).

Brands should be careful. You cannot be everything to everyone. It's as difficult for premium brands to enter volume categories as it is for mass market brands (like Hyundai) to sell premium cars.

[iamahunter]

I personally think that the brands like these should stick to where they are now. Rather than introducing small car and trying to get more numbers, its safe to stay up their and maintain the brand value, as many buyers opt them for brand value itself.

We all know what happened with Honda, which was once considered premium brand in India with City being their smallest offering, even Jazz was nice. But they lost it when they tried to get more numbers with Brio.