Mercedes-Benz is planning to invest an amount of Rs. 350 crore at its Chakan plant near Pune in order to set up two new car lines and enhance car production for the Indian market. The capacity enhancement is in line with the company’s target of regaining the top position in the Indian luxury car segment by 2014 currently held by BMW India.
The company is planning on assembling 4-5 car models at the Chakan facility which will not only enable it to reduce costs of high import duties but will also enable the company to produce large volumes. Among the models to be assembled at the facility are the compact cars the B-Class and the A-Class along with two SUVs, the M-Class and the GL-Class which are already in the domestic portfolio of the company. The fifth car model on the cards is the small SUV GLC which may get a 2014 launch.
The production enhancement is being viewed as a route to expand its presence in the Indian car market by Mercedes-Benz.