In another class

Mercedes-Benz has priced its new entry level A-Class compact to tackle a segment of the NZ market it has never been in.

The three-door model - still under evaluation - will cost $36,900 with a five-speed manual gearbox. This price puts it square in the segment which includes best-selling Euro rivals the VW Golf and Peugeot 307.

The three-door A-Class shares the same platform as the five-door variant - and has the same improved interior room - but has a different body shell.

The new five-door model goes on sale on Monday, comes with a mix of new engines and seven-stage CVT transmission. It has a considerably improved ride and handling, more safety features and better fuel economy than the outgoing model.

The line-up includes three petrol and two diesel models, priced between $44,900 for the entry-level 1.7 litre petrol to $58,900 for the premium 2-litre diesel.