The premium S class 350 of Mercedes-Benz will soon be cheaper by 15-20 per cent, with the company planning to assemble it at its facility in Pune.
"We have started assembling of the new model of S-class car at our Pune plant recently and the first batch of this would come out this month. We expect its price will go down as we would cut import cost," Daimler Chrysler Director (corporate affairs and finance) Suhas Kadlaskar said in Mumbai.
Market analysts estimate the price reduction to be in the range of 15-20 per cent.
Mercedes has two variants in S-Class, S-350 priced between Rs 72-75 lakh and S-500 with a price tag of Rs 85 lakh plus and is imported from Germany. The S-350 would henceforth be assembled in India.
"The complete built up units of S class attracts an import duty of 112 per cent. The company would narrow down these costs to a large extent as it starts domestic assembling," he added.
Presently, the company assembles its C and E class models, priced relatively cheaper, at its Pune plant.
Kadlaskar said exact quantum of price reduction was being worked out.
The company sold around 850 cars in the country as on June 23. It has sold 47 S-Class, 400 E Class, 335 C class and 35 imported cars, which include 18 CLS, and 17 SLKs.