[sid_deb]

Originally Posted by androdev

For a luxury brand, it's better to fail at a higher price point than succeed at lower price point.

Very well said.

If I may add, failure of entry level product is still a win for luxury brands as it allows them to increase price of their upper segment successful models even further IF competition also plays ball (which clearly happened here with BMW launching the overly priced 2 series earlier).

I won't be surprised at all if the C class/3 series start retailing at 75L in another 4-5 years

[Varun B]

Bang on!!! That's what Merc have done. They have discontinued the prime variant and jacked up the prices of the progressive and c300d. C300d had an ex show room sticker price of 49-50 lakhs last year. Now it's priced at 54 lakhs. They are creating space for the A class.

[GTO]

Overpriced for an entry-level Mercedes that is competent, but comes with many compromises. However, the price doesn't surprise or shock me at all. It might be recollected that the CLA-Class top variant was launched at 35-lakhs 5 years ago (source). 5 years of inflation + the additional equipment alone would result in the price increase we've seen. Mercedes also isn't offering a lower variant. Period.

Frankly, one of the reasons we're seeing such overpriced small cars from Audi (Q2), BMW (2-Series Gran Coupe) and Mercedes is because all 3 of them find themselves stuck in a discount death-trap. No one buys their cars without discounts running into the lakhs of rupees, and they themselves are to blame for developing such customer habits. As a result, all of their MRPs are planned, keeping in mind 5-lakh rupee discounts or above. My Jiju had bought a Benz with a 4-lakh rupee discount back in 2014 and the numbers have only increased since (10-lakh rupees off the top variants of an E-Class or 5-Series are commonly heard of). Recently, a BHPian was offered an Audi A6 at 49 lakhs !

[veedub89]

Originally Posted by Venkatesh

Mercedes-Benz India has announced that the A-Class Limousine is already sold out for both the months of April and May 2021. Right now, the company is taking pre-orders for June 2021.

Attachment 2136861

Source

Sold out probably just means that all the units of the A Limo have been allocated to the dealers.
So now every dealer in the country will have stock for the A but the factory will have none. Merc India can technically claim that they have sold all the units.

Same strategy as Skoda/VW before.

Whenever I see "sold out" ads for cars I know are not going to do well due to price or positioning or whatever, I think to myself, "Yup, still a lot of suckers in this country."

[ProximaCentauri]

An Audi A6 at 49 Lakhs! That is an insane deal for a very accomplished car that bests its competition in refinement, technology and a few other areas! A no-brainer!
Constant increase in prices has led to extremely overpriced products, not worth the money at all, like this A-class and 2-series. Still, they'll sell because of the badge on the bonnet, as always, even though u might get cars from a segment above like a 330i Sport or an Audi A4 Technology at the same price! Highly disappointed on the pricing direction of the luxury car market. As someone rightly said above, a C-class will cost 70 big ones a few years from now.

[pk1972]

Atrocious pricing but this is becoming the norm now. Also, the higher the price, more the range for Year-end discounts

Going by this pricing, GLA will start around ~ 45 lacs?

[yd_gli]

The upward drift in prices of the three luxury German OEMs is due to the fact the Hyundais, Tatas, Mahindras, MGs etc are slowly and steadily moving up the chain in terms of powertrains and features. With a Safari now costing ~26L, the new XUV around the same number, the luxury car OEMs need to move their prices higher to maintain a steady gap with the lower rung of OEMs. Nobody buys a Mercedes in India because it is a Mercedes. They buy it because it is three times the price of a Hyundai. Plain and simple. Now, we wouldn't want an XUV customer cross shopping with a Mercedes, would we?

The engine specs on the A-class and the turbo Duster being the same were a revelation to me when I read the earlier posts and I almost fell off my chair laughing. The new generation of A-class, 2 series etc are meant squarely for the uninformed Tier-2, Tier-3 city buyer. The sold out ads are aimed straight at them.There are a lot of people who will wisely invest their family wealth into an A class.

[Baddychat]

The pricing is on the higher side and probably an indicator that the next gen C Class prices will start upwards of 50 lakhs. I would also agree with the point that some of the members made regarding the increase in pricing of a Tata Safari and the likes. They want to keep the premium positioning intact.
I think GTO hits the nail on the head where he describes the actual scenario when you go to talk money with them.
An empirical formula for this would be that in most sales they make, they are ready to shave off 10-15 % off the sticker price depending on what they are selling.
In reality the A class would be soon be available at sub 40 ex-showroom.

[Lowflyer23]

Originally Posted by androdev

For a luxury brand, it's better to fail at a higher price point than succeed at lower price point.

I strongly disagree sir, IMO nowadays providing value is the key as the competition is cut-throat. Increased sales due to lower prices might actually mean a good thing for the luxury brands considering the disposable incomes, the desire of young entrepreneurs and upper middle class to graduate into entry level luxury offerings.

Long gone are the times when a retired person or a well to do businessman above the age of 35 only would be signing a cheque for a Mercedes.

[KaurDiCar]

Mercedes had a chance to shake things up but they have terribly dropped the ball here.
If it had an on road price of closer to 40L, the sticker would have swayed potential Superb, Fortuner, Endeavour buyers but at the current prices it's just targeting the 2 series which was severely overpriced to begin with.

[PrideRed]

Originally Posted by KaurDiCar

Mercedes had a chance to shake things up but they have terribly dropped the ball here.
If it had an on road price of closer to 40L, the sticker would have swayed potential Superb, Fortuner, Endeavour buyers but at the current prices it's just targeting the 2 series which was severely overpriced to begin with.

I believe Mercedes/BMW intentionally keep sticker price higher. A lower price may reduce their brand value. They know for sure these cars won't sell without hefty discount, but for manufactures and buyers these are 45-50L rupee car on paper. Same strategy as Apple, they won't reduce price of even outdated/low spec model, just to ensure their brand value is intact.

[Pancham]

I am not sure what the hullabaloo is about. Its a Mercedes. Its the top model. And as GTO rightly mentioned, it will be heavily discounted in a few months. So the rational thing to do is wait for a few months and you will get it at the price you want.

Had they priced it at 34.99L, there would not be any discounts (or miniscule at the very best) few months down the line. Then by Diwali, we will only be ranting in this thread about how Mercedes has become arrogant for any giving any discounts on the A.

They (and other luxury brands) know the Indian market very well - price it high and then discount it. Simple.

[Astitva]

Sometimes I feel the sole purpose of these 'entry level' luxury cars is to pump up the prices of the pre-existing models like C, 3 etc

[CrAzY dRiVeR]

As per an update from Sirish Chandran - the yellow colour on the A35 AMG costs an additional 6.7 lakhs!

[JoshMachine]

Even the word “insane” doesn’t cut it, when you hear such pricing.
But then is this insanity due to the fear of pricing it too “affordably” and losing out on the brand equity in general or is it due to the fear of the value luxury segment catching up fast, and then trying to maintain some distance from them?