Mercedes-Benz on the road of expansion

German auto giant Mercedes-Benz which is facing stiff competition from the likes of BMW and Audi is planning to get more aggressive and expand so that it can claim back its lost position. The company has decided to make fresh investments which will not only translate to more new products being launched but also make them affordable. Ammar Alvi has more.

Mercedes-Benz India’s new plant in Chakan, Pune, has earned the benchmark of being among the fastest green-field operations ever to be created and is rated among the top most CKD plants of Mercedes-Benz, globally. The company has approved a fresh investment of `850 crore which will help it to grow to the next level. The initial investment of `250 crore was scaled up to over `600 crore with the setting up of Mercedes-Benz India’s own technologically advanced paint shop capable of water-based painting. The new paint shop is targeted to be operational by October and has an annual capacity of 20,000 units (which can be extended up to 40,000 units annually). 

Peter T Honegg, Managing Director & CEO, Mercedes-Benz India commented: “We are bullish about the Indian market and this is reflected in our long term commitment towards the dynamic Indian market. The investment of `850 crore will help us strengthen our production and operational capabilities with regards to our existing products and our exciting and aggressive product offensive which we are readying for the Indian market.”

Presently Mercedes-Benz India locally manufactures its flagship sedans—the C-Class, the E-Class and the S-Class—in its Chakan plant. With Daimler AG recognising the emergence of high potential growth markets including India, the country will earn the distinction of being among the first markets to start assembling the new M-Class, outside Daimler AG’s parent SUV plant in Tuscaloosa/Alabama, USA.

Mercedes-Benz India through its dealer partners already carries an investment of over `480 crore spread across its 31 showrooms and 41 service outlets located in 31 Indian cities.