Mercedes-Benz to triple India production by 2015 image

Daimler’s Mercedes-Benz luxury brand is planning an investment of $71.5 million over the next few years to produce three times more cars at its India manufacturing plant.

According to the company, this will bring the carmaker’s total investment in its Indian subsidiary to more than $179 million. Daimler wants to increase production capacity from the current 10,000 units a year to nearly 25,000 – 30,000 units a year by 2014 – 2015. In order to do so, the plant will support at least six products to the existing CKD operations.

Peter Honegg, Mercedes-Benz India CEO, told The Times of India that the company has recently spent $36 million to increase paint-shop capacity at the Pune plant from 10,000 units a year to 20,000 units. “With a little more investment and additional shifts, the capacity will go up to 30,000 and even 40,000 units per annum. Alongside, investment is required in creating new assembly lines,” Honegg also said.

Mercedes-Benz announced that new models such as B, A, CLA and GLA Class will be added to CKD operations in India, in addition to the ML and GL Class. The luxury car maker is currently assembling C, E and S Class models in India. Daimler’s long-term plans for the Pune plant are to increase capacity to 90,000 units a year, a goal that it expects to achieve by 2020-2021.