Why Mercedes-Benz is Offering Lower-Priced Models

Giancarlo Perlas January 14, 2013

As stated in the previous report, Mercedes-Benz is now working on a new set of cars with a lower price range. The new CLA-class is set to be the company’s entry on the $30,000 price tag, which is now within the reach of more customers, especially with people at a younger age.

The move by the German manufacturer is not surprising as the competition is now getting very tight on the luxury car market. Its competitors have already started offering more compact and sporty cars plus crossovers under the $30,000 and $40,000 price range. One notable competitor of Mercedes-Benz who began providing autos under the mentioned price tag is BMW, which started selling them last year.

The decision by BMW proved to be very effective because it continues to sell more units than Mercedes-Benz despite the latter’s sales growing over the span of two years. In the U.S. alone, BMW sold 281,460 units as compared to the 274,134 figures of Mercedes-Benz. You can see the other figures and more details in this related report by Peter.

Analysts attribute the success of the main rival of Mercedes-Benz to its ability to sell high-end cars to lower-end customers. So hopefully, the switch of focus of the Mercedes-Benz brand to the U.S. plus their step to provide lower-priced models to customers will prove to be a game changing move that will once again put them on top of the rankings.