Mercedes- Benz's newly launched compact A-Class is the carmaker's answer to the Malaysian government's policy of gradual lowering of car prices.

The new A-Class launch is our response to the government's demand.

"It is [the new A-Class compact] a new entree segment for us too, which we believe will be attractive to our clientele," Mercedes-Benz Malaysia president and CEO Roland S Folger told media at the launch.

He said Mercedes-Benz has been making efforts to reduce the prices of its cars by raising local content and stressed that the brand is competitively priced in the luxury market segment.

"We are not waiting for the government to come out and ask us to do that [localising automotive parts], we're doing it all the time to bring car prices down.

"We are very competitively priced in the market place in the luxury segment . We try to find local suppliers that will help make our vehicles even more affordable," he said.

Mercedes-Benz Malaysia has launched two new A-Class variants for the local market, A 200 BlueEFFICIENCY and A 250 Sport.

The A-Class models were designed with young and small families in mind as they are sporty yet classy.

Mercedes-Benz Malaysia sales and marketing vice-president Kai Schlickum said the A 200 BlueEFFICIENCY is the first model by the German manufacturer to be priced below RM 200,000 (US$ 62,942).

The A 200 BlueEFFICIENCY is priced at RM 198,000 while the A 250 Sport is priced at RM 238,000.

"The enhanced safety, comfort and connectivity feature of the new A-Class promises an exciting new experience for drivers in the compact segment," Schlikcum added.