The company is moving its production facility to a new plant in Chakan, Maharashtra, which has five times the larger premises than its current facility in Pune. The plant is likely to become operational in early 2009.
The plant at Chakan, Maharashtra will have a initial production capacity of 5,000 units per annum, which will be upgraded as demand rises. The plant will manufacture more cars compare to the current capacity of 4,000 units. The facility will not only manufacture passenger cars, but also Actros trucks and bus chassis.
Mercedes has introduced the Actros range of trucks, which they hope will drive up the sales graph in India. It will also launch Mercedes buses by end of this year.
The new plant is being constructed with an investment of Rs 250 crore. The company plans to hike the production capacity to 20,000 units over the next five years.
This is for the first time that Mercedes has set such a high target for the Indian market. Commenting about the growing market, Managing Director and CEO of Mercedes Benz (India), Mr. Wilfred Aulbur said, “The current growth path seems good, and we hope to continue the same level for the next 5-10 years.” The company has predicted a growth of more than 50 percent over the next 2-3 years.
The company has sold 2,500 passenger cars in the last fiscal year, which is more than half the size of the luxury car market in India.