Mercedes-Benz India to Double its Capacity

Added in: Mercedes Benz

Mercedes-Benz India will soon double its production capacity. As demand for luxury cars in the Indian market soars, Mercedes-Benz India looks to utilise this opportunity to the hilt.

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Mercedes-Benz currently operates a single fully owned plant in Pune. In the last fiscal year, Mercedes-Benz India registered a sales figure in excess of 9,000 units. The plant in Pune currently has an annual installed capacity of 10,000 units. It is undergoing an expansion phase right now, and this step will double the annual capacity to 20,000 units.

As of now, the plant expansion is in its final stages. The process of the plant expansion needs to get a few more approvals. After that, it will be ready to contribute to production in full gear. The Pune plant of Mercedes-Benz India oversees the production of models such as the C-Class, E-Class, M-Class, GL-Class and the S-Class. Models such as the A-Class and the B-Class are imported into India, employing the CBU route.

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It is to be noted that the A-Class and the B-Class models constitute a major chunk of Mercedes-Benz India’s sales pie. Once the Pune plant undergoes a complete expansion, the A-Class and the B-Class models will be assembled locally. This will definitely lead to a lowering of the prices. Few days back, Mercedes-Benz India unveiled the “Edition 1” of the A-Class and B-Class models. You can have a look at our report here

In addition, analysts point out that the luxury car market is poised for a steeper growth this year. As the affluence of Indians increases, they tap into sources of luxury which were earlier unaffordable. Some reports suggest that the luxury car market will grow at a faster clip as compared to the affordable passenger car market.

Hence, it is not surprising that Mercedes-Benz India is expecting a double-digit growth in its volumes this year. The plant expansion is just a hint of the things that are yet to come. Mercedes- Benz India has stated that three new model launches will take place this year. Two of them, the CLA 45 AMG and the GLA Class, have been confirmed. Stay tuned to us for more updates!

Source – Economic Times

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