Mercedes Benz in India seems to be stung by the fact that BMW has overtaken it as the No.1 luxury car maker in India.  If you were Mercedes you would be too.  Mercedes has a past in India which can only be equalled by Rolls Royce in terms of the halo that the brand has.  Also Mercedes set up shop in India 10 years before BMW.  So to make amends and t0 ensure that it gets the crown back Mercedes has launched a two pronged attack on the market.  The first prong will see the introduction of newer products such as the A and B class vehicles and the second will be to penetrate newer areas of the Indian car market.  So Mercedes has decided to go to tier II and III cities/towns with its dealerships.  But BMW will not be behind in countering these.  So may the best brand win.