Mercedes Benz is realizing that they need to offer cheaper models in the Indian market to respond to growing competition from BMW and Audi.

The company has plans to launch a new model named Sports Tourer from their B-Class in India in September.

This is expected to become their cheapest offering in India with pricing below Rs. 25 lakhs.

Mercedes Benz C-Class models are currently the cheapest in India. Prices starts at around Rs. 28.5 lakhs.

Both Audi and BMW are offering cheaper models which are doing extremely well in the Indian market helping them expand their market share.

BMW has already overtaken the top spot in the luxury segment and Audi too is aiming to overtake Mercedes Benz in the coming years.