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The company has to pick between sporty coupé-like appeal or the practicality of the A-class sedan.

The CLA has been quite a success for the German brand in India. But before the next-gen car comes here, the company has to decide whether it launches a car with a sporty and coupé-like profile of the next-gen CLA or the practicality of the A-class sedan.

"Our product management team will do a detailed study. But we don't have that huge a volume of existing customers of MFA cars available, so we will take some time to decide," Roland Folger, MD and CEO of Mercedes-Benz India said.

Both cars will be built on the same platform and the team conducting the study for India will have to evaluate a number of key points, including whether the new A-class may cannibalise sales of the popular C-class.

The all-new A-class is set to make its world premiere at this year's Geneva motor show and the carmaker will show the new CLA next year.

"It can't be soon enough. It also takes time because we locally assemble these vehicles," he stated. "We would love to increase the localisation. It depends on the volumes and whether we get an Indian supplier who can produce these parts in relatively smaller numbers," he said.

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