Mercedes-Benz E-Class Establishes New Segment

Scoff if you will and judge me for having a first-world thought on the pricing of the new Mercedes-Benz E-Class! The car has launched at Rs 56.7 lakh for the E200 and Rs 70.15 lakh for the E350d. Mercedes-Benz India has in some ways throw down the gauntlet to its immediate rivals. But only if the long wheelbase gamble pays off. If that happens then the star would have set the car amongst the pigeons as it were! So here's the thing - in case you've forgotten or haven't read my review of the new E-Class it is coming to us in its 5th generation as a long wheelbase sedan only. Both the petrol and the diesel are long wheelbase and fairly packed to the gills in terms of comfort and tech (the diesel even more than the petrol as it's also the powerful E350d). The petrol doesn't have the air suspension and the Burmester sound system - but has everything else the diesel does - including the panoramic sunroof and the chauffeur package.

The Mercedes-Benz E-Class comes with rear reclining seats for added comfort

The petrol E200 has a 2 litre, 4-cylinder engine that makes 182 bhp and has 300 Nm of torque. The diesel is the 3-litre V6 with 255 bhp and 620 Nm of torque. Both have the 9G-TRONIC auto gearbox with paddle shift standard. The long wheelbase configuration is also standard, of course. Now when I first heard about this strategy I considered it a masterstroke - because the overwhelming majority of buyers of this segment of car are chauffeur driven. So offering them reclining rear seats, cavernous legroom and more comfort than the benchmark in this class is superb (pun intended). After all these are largely affluent buyers who like to be pampered but aren't filthy rich buyers who'd opt for an S-Class instead.

And that's where the issue of price comes into the picture. Mercedes-Benz has kept the ex-showroom price of the new E-Class at about Rs. 70 lakh. If the price had severely breached that mark it could have sent the car into a different stratosphere. But even the current pricing allows the competition to now appeal to a different buyer altogether, get price competitive and eye higher volumes from this segment. Volumes that currently belong to the E-Class by the way! Consider the Jaguar that recently rolled out its locally made XF at Rs. 47.5 lakh. The BMW 5 Series starts at Rs. 50.50 lakh, the Audi A6 at Rs. 52.75 lakh and the very attractive and well-specced Volvo S90 at Rs. 53.50. Now I admit these are all starting prices and the higher models cost a bit more. But it's not a whole lot more in most cases. Now that there is a price differential between them and the new E-Class, Mercedes-Benz will have to work very hard to convince buyers to adopt the new car and its extra proposition - because the buyer in this segment may be affluent but is still price sensitive anyway.

Mercedes-Benz E-Class Competitors

If you look at the E200's price then the gap isn't a huge one - and we now see one brand offering a car that does a lot more for the non-driver owner, at a slightly incremental price - while others will struggle to match that offer of comfort or value. Given the buyers is largely chauffeur driven as I said, performance or gadgetry up front won't be such a big hook either (5 Series, S90 respectively). So assuming the new E-Class may now run away with the segment - what can the others do? Well they'd have to at least consider a long wheelbase - which only some brands have in their global arsenal anyway. But even so those cars wouldn't come immediately as all this requires planning and much technical work and proving carried out. So for instance - BMW will launch its new 5 Series before the end of 2017 - in its regular wheelbase avatar of course. If it were to consider a long wheelbase 5 - that couldn't happen before the model's midlife makeover and relaunch - which is easily 3 years away. The same would apply to the A6 - whose next Gen is only coming about 18 months from now. Audi could still consider a long wheelbase from the very start - but that'd delay the arrival of the new modem to India by a few months - as has already happened with the E-Class. And none of them can really make a business case to sell both regular and long wheelbase versions in the market.

So it's going to be interesting to watch. Two clear segments are getting created within this space. And expect a mad rush for great value offers with some models staying firmly below Rs 50 lakh - at least for their starting offer.---