The company has launched the C-Class diesel in two trims, the 'C 220 CDI Style' variant priced at Rs 39.9 lakh and the 'C 220 CDI Avantgarde' priced at Rs 42.9 lakh (all prices ex-showroom Delhi), Mercedes-Benz said in a statement.

The diesel variants of the new C-Class will be available as completely built units (CBU) only, it added. Besides, Mercedes-Benz said it has commenced the local production of the new-generation C-Class petrol at its Chakan plant.

"With the launch of the C 220 CDI we now present the complete portfolio of the new generation C-Class to our Indian customers," Mercedes-Benz India Managing Director & CEO, Eberhard Kern said.

The commencement of local production of the new C 200 Avantgarde petrol within three months of its India debut, reiterates the company's commitment of providing customers fascinating products which are made in India, he added.

Mercedes-Benz has raised the manufacturing capacity of its Chakan plant to 20,000 units annually and production will commence from the newly constructed facility in 2015. The plant currently produces five models – C-Class, E-Class, S-Class, ML-Class and GL-Class.