The Mercedes-Benz CLA electric sedan will be the German luxury carmaker’s biggest launch in India this year. However, the big news is that the new CLA will completely replace Mercedes’s existing line-up of entry-level cars comprising the A-Class, as well as the EQA and EQB EVs. This is part of Mercedes-Benz India’s strategy to strengthen its portfolio at the top end of the luxury segment, which is where a majority of its revenues and profits come from.
- Mercedes saw 23 percent drop in entry-level segment in 2025
- New CLA line-up to consolidate entry-level segment
Upcoming CLA will be Mercedes’s new entry sedan
At the company’s annual sales event earlier last week, Santosh Iyer, MD and CEO of Mercedes-Benz India, revealed that the brand witnessed a 23 percent drop in the entry-level segment, where BMW has gained ground with its 2 Series and the popular iX1. But rather than fight it out with its arch rival, Mercedes is deliberately steering away from a price war in the entry-level luxury cars, where there is already huge pressure on margins.
“We are seeing a lot of discounting and price wars in the entry-level segment, and we would like to stay away from that. The fundamental issue is not just profitability but also the residual value of cars. The brand also takes a hit in the process,” explained Iyer.
However, Mercedes-Benz is also not completely ditching the lower end of the luxury market, and it will consolidate its entry-level portfolio with the upcoming CLA.
“The new CLA will replace the A-Class, EQA and EQB in our line-up. This is only the logical thing to do, as the new CLA is based on a next-generation platform,” said Iyer. Alongside the CLA, the ICE-powered GLA is also expected to soldier on as is.
Upcoming Mercedes Benz CLA positioning in India
Mercedes’s current entry-level portfolio begins with the A-Class sedan, which is priced between Rs 44.46 lakh and Rs 45.92 lakh. Meanwhile, the EQA costs Rs 67.20 lakh, and the EQB is priced from Rs 72.80 lakh to Rs 78.90 lakh.
The new CLA, which is expected to be in the ballpark of Rs 60 lakh, will surely take the entry point to the brand a lot higher, but it still could be priced competitively against the fully imported EQA and EQB. Iyer is confident that, despite the premium over the A-Class, the CLA will still be able to offer value at that price point.
“With the latest-generation MB.OS, AI assistance and Nvidia chip, the CLA will be a latest-generation car. Can we match our rivals selling at a lower price? Maybe not. But we would want to play on our strengths, and we’ll surely prioritise value over volume,” said Iyer.
All prices are ex-showroom, India.
With inputs from Saptarshi Mondal
