What the headline says is now very old hat.  It has been reported that Mercedes Benz is bringing in both the A and B class cars to India.  Now what is interesting is the claim by BS Motoring that they may be assembled locally.  Our friendly Finance Minister Pranab Mukherjee had decided in the budget originally that CBUs and the CKDs would attract the same import duty structure but ultimately came down halfway to say that they would attract 32% instead of the proposed 60%.  That has still rankled the auto makers, especially Germans because this would push their prices up.  We are still not sure what the players have to gain by going the CKD route when the incentive is so marginal.  But SIAM is known to be negotiating about this on behalf of the manufacturers with the Govt of India and if those negotiations are successful then Mercedes may assemble the cars in India.  Otherwise, we are not sure.