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Mercedes-Benz to Infuse Rs. 250 Crore in the Indian Wing to Double its Capacity

By Motortrend India Staff   |   17 May,2013

The German auto maker, Mercedes-Benz plans to pump in additional Rs. 250 as an investment in the Indian division to double its production capacity. The luxury brand plans to produce up to 20,000 vehicles by the end of this calendar year. Mercedes-Benz India MD & CEO Eberhard Kern said, "We are enhancing our production to cater to the increasing demand for luxury sedans and SUV in the domestic market." He also added, cumulative investment will be raised up to Rs. 850 crore.

With the assembly of GL-class in the Pune plant (to be started by September) India will have five models of Mercedes-Benz cars in India, locally manufactured. The models are C-Class, E-Class, S-Class, ML Class and the GL-class launch recently. Locally produced vehicles attract lower taxation in comparison to imported ones.

Mercedes-Benz luxury cars are popular in India. But in the last few years, it is losing its market share to Audi and BMW. With increasing competition, Mercedes SUVs and sedans are struggling to maximise its profit margins in India.

The recently launched GL-class hatchback has created quite a buzz among auto lovers. Kern said, “We plan to launch more hatchbacks and SUVs to suit the taste of the growing number of offroading aficionados in India." The auto brand is likely to launch few more models along with the A Class hatchback later this year.



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