Mercedes-Benz India increases investment in Chakan facility

Pune, September 5, 2012: Mercedes-Benz India is clearly on an aggressive drive to grow its market share in the country. The luxury carmaker has announced plans to further increase its investment to Rs 850 crore in its Chakan facility, near Pune, which is rated among the best CKD plants of Mercedes-Benz, globally.

The company, which began its India operations in 1994, moved into the Chakan plant in 2009. The initial investment of Rs 250 crore was scaled up to Rs 600 crore with the setting up of a technologically advanced paint shop capable of water-based painting. The new paint shop is targeted to be operational by October 2012 and has an annual capacity of 20,000 units (which can be extended up to 40,000 units).

According to Peter T Honegg, MD and CEO, Mercedes-Benz India, “We are bullish about the Indian market. The investment of Rs 850 crore will help us strengthen our production and operational capabilities as regards our existing products and our aggressive product offensive which we are readying for the Indian market. This investment will enable Mercedes-Benz India to be future-ready.”

Piyush Arora, director (technical), Mercedes-Benz India, added: “Mercedes-Benz India’s aggressive growth plan includes the local manufacturing of several new models in the coming years, beginning with the new M-class. This fresh investment is in sync with the growth expectations from the Indian market and will further strengthen the range of locally manufactured Mercedes-Benz models from the Indian operations.”

At present, Mercedes-Benz India locally manufactures its flagship saloons -- the C-class, E-class and the S-class – at the Chakan plant. With Daimler AG recognising the emergence of high-potential growth markets including India, Mercedes-Benz India will be among the first markets to start assembling the new M-class, outside Daimler AG’s parent SUV plant in Tuscaloosa/Alabama, USA.

In addition to the proposed increased investment in its production facility, Mercedes-Benz India plans to speedily grow its network in the country. It currently has 31 showroom and 41 service outlets located in 31 Indian cities.