[parekhakshar]

No doubts that S class is one of the best cars available in India and it's my personal favourite too, but what's with Mercedes? How they can justify so much price rise? I'm sure they will hike the prices of S class more by minimum 20% during its life cycle.

[AamodB]

Originally Posted by parekhakshar

No doubts that S class is one of the best cars available in India and it's my personal favourite too, but what's with Mercedes? How they can justify so much price rise? I'm sure they will hike the prices of S class more by minimum 20% during its life cycle.

The S-Class launched yesterday is a lot of "Launch Edition" CBUs and are priced higher. The CKD version will come a few months down the line and will be priced higher at a roughly 5% premium over the previous generation which would be around 1.5 to 1.6 Crores.

MBIL has maintained roughly a 4% CAGR for the S since the launch of the W221 (my own calculations for ex-showroom prices). So hopefully they maintain some sensibility about an already overpriced product.

[Straight6_N54]

Three letters to blame for this price- C.B.U. Higher displacement with all the extra duties and taxes, it was bound to cost high. But when launching a niche luxury flagship limo, Merc knows their customer base. Someone who is willing to shell over 1.5Cr for a luxury limo can definitely stretch for a completely revamped S-class.

All the new interior tech will definitely catch the eyes of even regular businessmen who doesnt necessarily be a car enthusiast. S-class customer base is entirely different ball game. If they are car enthusiasts they would probably have 911 or Huracan in their garage, if they aren't enthusiasts businessmen love the rear seats of S-Class and this generation has every bells and whistles to woo the customers.

My take is that Merc will pull off this price really well for the initial few months, once the ultra luxury customer demand drops down they can introduce a 350 and 300d models manufactured in India with a steep price difference of around 50 lakhs. This brings in more press, more conservative customers and more upgrades from existing luxury car owners.

[Sahil]

Originally Posted by AamodB

The CKD version will come a few months down the line and will be priced higher at a roughly 5% premium over the previous generation which would be around 1.5 to 1.6 Crores.

I hope so!
__________________
Below is the pricing history of the S-class over the past 7 years since the W222 launch.

Jan 2014 - w222 S500 Launch Edition CBU was priced at 1.57cr
March 2014 - CKD S500 for 1.36cr and also added the S350 CDi for 1.07cr(by 2015 it was 1.11cr)
March 2016 - CKD S400 v6 for 1.31, discontinued S500 v8

The S350d was a bulk of the W222 sales due to it being a diesel but more so because it was nearly 20% cheaper than the petrol

MBIL bridged this gap and the last editions of the w222 facelift were the S400d and S450 petrol that were 1.40 and 1.42 ex-showroom

Now it seems that MBIL this time around is going to launch the same engine size in the CKD as the launch editions - S400d & S450. This earlier wasn't the case hence the large price drop of 50L when compared to the S350d vs S500 launch edition. Hence I am doubtful of there being a 50L drop this time around.

Mercedes is trying to go a segment higher with the S-class especially the Maybach. There is a large gap between the Maybach and the Bentley, Ghost, etc. The Maybach cannot reach close to that pricing unless the S-class goes up the ladder too.

[androdev]

Like @Turbonator mentioned, there will be a few customers across India who will pick up an S class as soon as it is launched without paying a lot of attention to the price. They certainly want to make a statement with the new S class. MB wants to collect that money first and then will do a more reasonable CKD launch subsequently. As has been their irritating tradition, they will dilute the CKD by removing some features to keep early buyers happy.

MB has become very dangerous like Toyota - they know how to run their business really well and charge a premium. As a value conscious buyer I fear companies like Toyota and now MB who leave nothing on the table for the customer.

[AamodB]

Originally Posted by Sahil

Mercedes is trying to go a segment higher with the S-class especially the Maybach. There is a large gap between the Maybach and the Bentley, Ghost, etc. The Maybach cannot reach close to that pricing unless the S-class goes up the ladder too.

Yeah good point. But I think there might be an element of Maybach being the VFM (or cut-price depending on perspective) option for your ultra-luxobarges, at least internationally. In India, the Maybach is bound to be 3 Cr which is just a shade under the Flying Spur.

Mercedes seems to be trying to push their entire range up by one segment. The new A-Class is priced at what the C-Class was not too long ago and the inbound W206 is bound to be 55Lish ex-showroom. Although painful to admit, in Mercedes' defence the C's ex-showroom is spot on at 51L accounting for ~4% YoY inflation from the 40L it was launched at 6.5 years ago.

But it does seem to be the case that the C will eventually be a pseudo SWB E-Class and the LWB E slotting in at the average price of the S and C which would be ~95L (ex-showroom)

So expect the pricing to be roughly
A at 40-45L
C at 55-60L
E at 90-95L
S at 1.5-1.6Cr

Like @androdev said, Mercedes is slowly but surely becoming the luxury segment's Toyota with a premium for their brand over their direct competition.

P.S. Brand value is one of Mercedes' A.C.E.S (pun intended) up its sleeve.

[Sahil]

Originally Posted by AamodB

So expect the pricing to be roughly
A at 40-45L
C at 55-60L
E at 90-95L
S at 1.5-1.6Cr

Scary but maybe true. However, I think the E-class start can't go to 90L, it will probably be closer to 80L. For which they least should start offering air suspension.

However, if the above does happen, there is an open opportunity for the other Germans as well as Brits to grab MBILs share.

Toyota never cared about volumes, MBIL does care about market share and leadership positioning. Toyota has the Innova and Fortuner running its show and hence it can afford to price the Camry at a ridiculous level and not bother about losing the volume game to the Superb. MBIL can't mess with it's bread and better- the E-class too much.

Let's also not forget the Americans are joining the part soon too- Tesla. While they may not be an outright "luxury" badge, the model 3 will definitely take away sales from the C-class. The model S from the E-class.

The EVs in CKD form will have aggressive pricing with all the concessions hence the Germans better watch out or join the part.

[AamodB]

Originally Posted by Sahil

However, I think the E-class start can't go to 90L, it will probably be closer to 80L. MBIL can't mess with it's bread and better- the E-class too much.

It also remains to be seen how the new sales structure of direct relationship between MBIL and the customer pans out. They might just go through with an uncharacteristic price correction since they can't dole out discounts.

I agree, maybe 90L would be a step too far from the 64L today. However unless they go heavy on their EV range, a 300/300d E-Class to bring congruity with GLE doesn't seem that big a stretch for the next generation model. They would gladly price it at 75-80L with a bit more kit like air suspension as you mentioned.

With Tesla, I'm unsure how well the Indian market will take to a 50-60L Model 3 or a 70L Model S. From what I can tell a lot of the hype is from teenagers or at least young adults who are fans of Elon and his billions rather than Teslas themselves. Subsequently the percentage of people who are willing to spend 50L+ on a car might not necessarily be willing to snub the German three especially with respect to the nascent EV infrastructure.

[audioholic]

Originally Posted by Sahil

Now it seems that MBIL this time around is going to launch the same engine size in the CKD as the launch editions - S400d & S450. This earlier wasn't the case hence the large price drop of 50L when compared to the S350d vs S500 launch edition. Hence I am doubtful of there being a 50L drop this time around.

So in addition to CKD price reduction, you can also expect a watered down version. Right now we have the all boxes ticked version which is quite expensive compared to the base version offered in Germany. The watered down version will be:

• Diesel engine in lower state of tune
• No rear axle steering
• Smaller infotainment display
• Smaller instrument cluster display without 3D effect
• No augmented reality HUD, just a regular HUD
• Five seat configuration
• No digital light

And a few other stuff striked off the option list. So the entry price also would be much lesser than what they can achieve just with CKD route. So the current versions might get a lesser price cut, but they will most likely add one or two entry level versions once local assembly begins.

[kamilharis]

Happened to click the majestic S the other day, what a fantastic thing to look at!

The S 500 4MATIC variant starts here (Saudi) at an equivalent INR of ₹1.15 Cr.

[Sahil]

Originally Posted by audioholic

The watered down version will be:

• Diesel engine in lower state of tune
  

I haven't seen a W223 S300d or S350d launched internationally yet. Given that the GLS is also just available in a 400d state of tune, I doubt they will launch a lower diesel engine. Unless they first launch it in the GLS too, but doubtful as it will cannibalise the GLE.

The lower tune engine is the only way the price will come down substantially.

Will be interesting to see how they "plug" the EQS in terms of pricing, maybe that will fill the price gap somewhere at the lower end since it is not as large or luxurious as the LWB S

[AamodB]

Originally Posted by Sahil

I haven't seen a W223 S300d or S350d launched internationally yet.

W223 is available in S350d guise in Europe for both the SWB and LWB versions. Pictures attached are from Mercedes-Benz UK's car configurator.

[audioholic]

Originally Posted by Sahil

I haven't seen a W223 S300d or S350d launched internationally yet

Have extensively driven an LWB S350d so it does exist.

The EQS will definitely be positioned above the S450. It just looks smaller or less luxurious. But if you see it in person, the EQS is much more modern and luxurious. It was a recent realisation for me.

[Venkatesh]

2021 Mercedes-Benz S-Class first drive reviews

https://youtu.be/F3y53I2P-n4

https://youtu.be/0SS7ldILSaI

[lamborghini]

Spotted 2 W223 S Classes on a pre-owned classifieds website already : different cities (Mumbai & Pune) and differing kms (300 & 1000 respectively).
Given the owners have paid a premium for being one of the first to own the car, and the limited numbers imported : could there be any issue leading to owners selling off these vehicles so quickly?