"I'm very excited about it," said Jeff Aiosa, a Mercedes dealer in New London, Conn. "It just gives us another opportunity to bring that youthful buyer in and have them grow up with the brand. It looked like it would be very appealing to the millennial buyer."

Aiosa described the A-class sedan's interior as "cutting edge and techy." He said Mercedes could conquest more than half of the A-class sedan's buyers from other brands if the price came in just above or below the $30,000 mark.