Mercedes Benz India will soon reduce the prices of its performance cars under the sub-brand AMG as it starts assembling these vehicles locally.

The first AMG car to roll out from its flexi assembly line in Pune will be the AMG GLC 43 4MATIC Coupe, which is due for launch next month. The price of such assembled vehicles will drop 20 per cent, said sources.

AMG is Mercedes-Benz’s sub-brand having a wide portfolio of performance limousines, performance SUVs, SUV Coupés, and sports cars.

The AMG brand has a dedicated retail presence through the AMG Performance Centres located across Indian metros.

These imported cars attract a duty of 110 per cent. Now with localisation, the duty is expected to come down between 16 and 60 per cent, said sources.

The company is going to pass on the tax benefit to the customer.

Commenting on this move, Martin Schwenk, managing director & CEO of Mercedes-Benz India, said: “The AMG brand over the years has become synonymous with performance motoring in India and remains highly aspirational.”

“The decision to locally produce AMG in India underlines Mercedes-Benz’s clear roadmap for the Indian market and our long-term commitment to our customers here. We want AMG to be more accessible and play a bigger role in the overall portfolio we offer in India. This decision is an important milestone towards strengthening our AMG ambitions in India further,” Schwenk said.

The AMG GLC 43 4MATIC Coupé is one of the highest selling AMG models in India.

Commenting on the localisation decision of the AMG, Piyush Arora, executive director (operations) of Mercedes-Benz India, said: “Our production facility is a global benchmark in quality and technological advancement in manufacturing, and remains the backbone of our growth story in India.

“We are highly excited to commence the local manufacturing of AMG in India as it will add a new production milestone in our India journey.”