In Korea’s fast-growing import car market, compact models ― those with an engine capacity of 2,000cc or less ― now make up more than half of new foreign-brand registrations.

Mercedes-Benz, after launching the original A-Class hatchback 15 years ago, has long been behind the game in this hotly contested segment, mostly because larger sedans enjoyed a premium.

The German carmaker is now looking to shake up the competition and capture a younger generation of drivers here with its smallest and cheapest model. 

The relaunched “baby Benz” is certainly attractive, especially at the front, with looks measuring up to any one of its bigger sisters.

The front features Mercedes’ familiar two-bar grille and daytime running lamps. The rear, however, is not so glam, with the rotund design of the taillights not up to par with the high-end models. The interior gained points for the air vents borrowed from the SLS supercar and the steering wheel from the CLS, but the choice of materials was not too great.

All three trims available in Korea ― the New A200 CDI, the New A200 CDI Style and the New A200 CDI Night ― are powered by a 1,796cc turbodiesel engine with Mercedes’ own seven-speed, twin-clutch transmission.

For the test-drive of the A-Class, Mercedes-Benz Korea embarked on a brave experiment by holding the media event on the 3.98 kilometer race track at Inje Speedium in Gangwon Province last week.

The Style version I drove was a lovely machine, with an engine powerful on the highway from Seoul and the circuit, while the new lowered suspension set-up allowed for a more comfortable drive.

The handling was sharp and smooth on the track. Understeer could be reduced as the car properly controlled changes in direction with low steering input but high precision.

The ride was also better at low speeds. The sports suspension option sometimes felt too harsh, with the ride trembling on smooth surfaces at times.

Britta Seeger, Korean chief of Mercedes-Benz, cited the still-fresh BMW 1 Series and the upcoming Audi A3 Sportback as key competitors. She would not say the hot-seller Volkswagen Golf was a direct rival for the car.

In terms of driving fun and stability, consumer reaction is likely to be mixed between the front-wheel-drive A-Class and the rear-wheel-drive 1 Series. (The Audi A3 is scheduled to hit the Korean market early next year.)

The A-Class is also bound to clash with the B-Class crossover, which shares the same platform.

The stiff competition in the segment is believed to have affected the price tag for the A-class, which was originally expected to hover at some 40 million won ($36,000), but was lowered to start from 34.9 million won.

What makes these bite-size luxury models more appealing is they suggest that their owners could afford to buy a bigger car but chose not to.

Considering this new kind of status, the A-Class, a mini Mercedes which has long been absent in the market, is a brand-new, powerful option for premium compact haulers.

By Lee Ji-yoon (jylee@heraldcorp.com)