Germany-based Mercedes-Benz, will be introducing new smaller-luxury car in the Indian auto market to attract the middle class consumers and get back into luxury car market. They had a good sales response in the Indian market in 2009 and 2010. Mercedes-Benz is making its first attempt of giving luxury cars to the middle class consumers.

Previously Mercedes-Benz occupied the Indian luxury car market with 60% in 2009. But, in the year 2010 it decreased their share percentage by 34%. Mercedes-Benz has 36 showrooms in India presently and they are planning to increase the number by 15 for every year.

Growth in the luxury car market can be attributed to higher disposable incomes, better roads and aspirations. Mercedes-Benz India will be assembling new compact models including small SUV and sedan that will attract more lower duty. The car makers have to play only 10 percent role in the market.

Part of the X1’s success is the lower sticker price. The model starts at 2.2 million rupees which is less than half the 4.9 million-rupee sticker price for Mercedes’ cheapest SUV.