Mercedes planning to invest Rs. 400 crores in India

In the coming years German Auto giant Mercedes Benz is planning to invest around Rs. 400 crores in its Indian plant to boost the assembly line capacity by three to four folds. It means Mercedes will push its investment in the Indian plants beyond Rs. 1000 crore mark.

Peter Honegg, Managing Director and CEO of Mercedes Benz India, has already informed the board at Stuttgart about making this investment.

In addition to its CKD operations, six more products will be added to its existing portfolio and new introductions like A, B, CLA and GLA will surely give Merc’s market presence in India a big boost. Mercedes needs to boost up its assembly capacity to handle about 25000 to 30000 units per year from the existing 10000 units per annum. This addition will cost Merc an additional investment of about Rs. 350 crore.

Mercedes planning to invest Rs. 400 crores in India

Currently the company assembles E, C and S Class of vehicles in India. While launching the B Class sports at the Buddh International circuit, Honegg made it clear that the company will also be launching its other three frontline variants, A Class (hatchback to be launched in 2013), CLA class (compact SUV, to be launched in 2013) and GLA Class (small sedan). All these vehicles will be manufactured in the CKD format in a couple of years.

Honegg also added that the firm has increased the paint shop capability at the Pune plant from 10,000 units per year to 20,000 units per year with an investment of about Rs. 180-200 crore. He also confirmed that the capacity could go further beyond 30,000 or even 40,000 units by some additional investment and shifts. Alongside that investment, the company is also required to construct new assembly lines.

Mercedes has planned to increase its capacity to 90,000 units by 2020-21.

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