Mercedes Debuts A-Class in India

Daimler AG's Mercedes-Benz brand has introduced its A-Class luxury hatchback in India to compete in the new but increasingly crowded luxury small car segment.

The A-Class joins its B-Class sibling, which debuted in India last September. The Mercedes models compete with the Audi Q3 compact crossover vehicle and Mini Cooper small car. The BMW 1 Series small car is due in September. Audi and Volvo also are planning to launch luxury compact cars there.

The A-Class is available in two versions in India: the 2.3 million-rupee ($40,400) 1.6-liter four-cylinder gasoline-powered A180 Sport and the 2.2 million-rupee ($38,900) 2.2-liter four-cylinder diesel A180 CDI. Both are equipped with a stop-start system and seven-speed automatic dual-clutch transmission.

The A-Class is the most fuel-efficient luxury model for sale in India, according to Mercedes. It says the diesel and gasoline variants achieve 20.6 km per liter and 15 km/l (48.5 mpg and 35.3 mpg), respectively.

The company reportedly aims to sell 110 to 150 A-Class cars per month. Those vehicles will be imported until local assembly begins next year at Daimler's Chakan plant near Pune.