Mercedes-Benz To Double Capacity With Second Plant In India

Luxury car maker Mercedes-Benz India Pvt. Ltd would start manufacturing at its second plant shortly, which would help the company double its production capacity in India, an official of the company said. 

“The second plant is in the final stage and in the process of getting all the approvals. The plant will be ready for use very soon,” Boris Fitz, vice-president (sales and network development) of Mercedes-Benz India said. 

The company’s first own plant started production in the country in 2009 which has an installed capacity of 10,000 units per annum located at Chakan near Pune. After completion of the second plant, the production capacity would be doubled to 20,000 units per annum. 

Last year, Mercedes-Benz registered sales of more than 9,000 units. “This calendar year, we are expecting to grow in double digit,” Fitz told reporters at the launch of special editions of A-Class and B-Class compact cars in the city on Thursday. “The new plant will make the company future-ready as the luxury car market is going to expand at a higher growth as compared to the normal passenger car market,” he said. 

At present, the volume of the luxury segment was 1.5% of the total car market in the country. “By 2022, this will go up to 4% of the total market estimated as 5.5 lakh units,” Fitz said. 

He said with the commissioning of the second production line, total invested made in India would touch Rs.850 crore. Mercedes-Benz plans to launch three more models in the current calendar year.