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Mercedes Benz India to double production capacity

Snapshot: A second manufacturing plant is being planned at the existing facility in Chakan near Pune.

German luxury carmaker, Mercedes Benz India is reportedly, planning to double the production capacity at its existing plant in in Chakan near Pune. The said 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 would become 20,000 post expansion. Mercedes Benz India registered total sales of more than 9,000 units in last fiscal and is currently, projecting growth numbers in double digits for the current financial year. 

Commenting on the expansion plan, Boris Fitz, vice president of sales and network development 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 4 per cent of the total car market estimated at 5.5 lakh units. The company claims that the total investment infused in the said production expansion plan would touch Rs 850 crore. 

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