Mercedes-Benz India to double production capacity

Luxury carmaker Mercedes-Benz is planning to double its production capacity at its plant in Chakan, Pune. A company official stated that the plant expansion plan is said to be in the final stage and in the process of getting all the approvals to become operational.

The company's first owned-plant in India started production in 2009. It has an annual installed capacity of 10,000 units, which will increase to 20,000 units post expansion. Last year, Mercedes-Benz registered sales of more than 9,000 units.

While speaking to the media, Boris Fitz, Vice-President, Sales and Network Development, Mercedes-Benz India, said, “This calendar year, we are expecting to grow in double digit. The capacity expansion has been planned to 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.”

At present, the volume of the luxury segment was 1.5 per cent to the total car market in the country. By 2022, this number is expected to go up to four per cent of the total car market estimated at 5.5 lakh units. The company claims that with this expansion in production capacity, the total investments done by the company in India would touch Rs 850 crore.