Viewing potential growth opportunities in India, Mercedes Benz plans to expand its manufacturing operations locally to achieve cost reduction and increase sales volumes. Mr. Peter Honegg, MD and CEO of Mercedes Benz India Ltd (MBIL), says that the company will start with the production of CBUs (completely built units) such as the M Class which has been well received and accepted by the Indian Consumers. Keeping the production localization on priority, a paint shop will be operational in India by the year 2012.
The C and E Class by Mercedes Benz are significantly localized with 40-50% of the parts being sourced from Indian suppliers. The same supplier base would be relied upon in order to enhance localization. Parts will increasingly be sourced locally and the new cars will be assembled here itself. The launch of A and B Class hatchbacks for the Indian markets is already a known fact in the light of the portfolio expansion plans of the company.