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Mercedes to invest Rs 400 crore in India
Posted on 20 Jul 20123,194 Views1 Comments
Within the next 2-3 years German luxury car maker, Mercedes-Benz will invest a sizeable amount in the Indian plant to augment assembly line capacity by three-four times
In the next couple of years, German auto giant Mercedes Benz will invest around Rs 400 crore in the Indian plant to augment assembly line capacity by three-four times. This will push its investment in plant and machinery at the Indian subsidiary beyond Rs 1,000-crore.
Mercedes Benz India managing director & CEO Peter Honegg has already moved the board in Stuttgart for the additional investment.
With at least six products set to be added to its existing CKD operations--ML and GL from its existing portfolio and new introductions B, A, CLA and GLA--Mercedes needs to ramp up assembly capacity from 10,000 units per annum to 25,000-30,000 per annum by 2014-15. And that will entail additional investment of over Rs 350 crore.
At present, the company assembles C, E and S Class vehicles in India. Showcasing the B Class sports tourer to reporters at the Buddh International Circuit, Honegg said this vehicle, along with three others from Mercedes Front-wheel Architecture platform--A Class (hatch) to be launched in 2013), CLA Class in 2013 (compact SUV) and GLA Class in 2014 (small sedan)--will be produced in CKD format within a couple of years.
"We have just increased paint-shop capacity at Pune plant from 10,000 units per annum to 20,000 units at an investment of Rs 180-200 crore. With a little more investment and additional shifts, the capacity will go up to 30,000 and even 40,000 units per annum. Alongside, investment is required in creating new assembly lines," Honegg said.
By 2020-21, Mercedes will increase its plant capacity to 90,000 units per annum. The B Class is the first in a series of vehicles that Mercedes Benz has lined up to complete its portfolio and take on competitors BMW and Audi. In the past few years, Mercedes Benz has rapidly lost market share, allowing first BMW and the Audi to overtake it.
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Kinshul
This investment may help Mercedes to regain no.1 position again in luxury car market which Audi has stolen from many including BMW
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