Premium German carmaker, Mercedes-Benz is planning to launch two new Sports Utility Vehicles (SUVs) in the Indian market to compete better with rivals such as BMW and Audi.

The company will launch its smaller GLA model, which is yet to be revealed to the market. The car, which is expected to take on BMW X1 and Audi Q3, will be based on the new MFA 2-wheel drive transverse engine platform that is also used in A- and B-class models. The model might also feature similar engines that are used in the A- and B-class models.

The smaller GLA model will come with different suspension systems with longer travel arms and 4-Wheel Drive (4WD) chassis. The basic model is expected to be priced at Rs. 23 lacs while the upper end model will have a price tag of about Rs. 30 lacs in the Indian market.

The company will also launch a new GLK right hand drive model for the Indian market. The new variant, which is named X205, is expected to be launched in 2015 and is being developed in Stuttgart, n Germany, where the company is located. The automaker will have to redesign the model to make a right hand drive vehicle.

Mercedes-Benz is competing with other German carmakers including BMW and Audi in the Indian market and is aiming to regain its top position in the country's small yet growing luxury car market.