German luxury automobile manufacturer Mercedes-Benz has announced fresh investments in the Indian auto market and plans to increase its total investment to Rs 850 crore by the year 2014. The current investment of the company stands at Rs 480 crore which leaves an amount of Rs 370 crore to be spent by 2014.
The company is in the process of setting up a technologically advanced paint shop with an annual capacity of 20,000 units in India to be functional by October 2012. The company has been increasing localization levels in India and currently manufacturers the C-Class, the E-Class and the S-Class sedan car models at its Chakan facility near Pune.
According to Mr. Peter T Honegg Managing Director and CEO Mercedes-Benz India, the fresh investment will enable the company to strengthen its production and operational capabilities. He added that the company has been hit severely due to the Indian rupee depreciation and cost cuts are being sought at all levels of operations.
The German automaker is also expanding its dealership network in the Tier-II cities in order to increase its presence in the Indian car market.