In spite of being in India for almost a decade longer than BMW and Audi, Mercedes Benz has been feeling the heat from its competitors, especially BMW that has overtaken Mercedes Benz convincingly in sales.  One of the reasons has been BMW’s pricing strategy. To counter this Mercedes Benz has decided to increase sourcing from Indian vendors for key components and bring its prices down significantly.  Audi however only has a CKD assembly operation and may therefore not be in a position to join any price wars, at least not yet.