Mercedes-Benz is planning to double its production capacity to 80,000 units in India over the next five years. It will invest Rs. 2000 crores for the same.

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Sales for most Mercedes models has been tremendous in India

Mercedes-Benz has been in the news for all the right reasons since the beginning of this year. Be it for the multiple proactive car launches they did in India or the continuously growing sales numbers which has kept them at the top in premium car sales until now, the brand has made headlines. Predicting the potential of growth in demand of luxury cars in India, the German carmaker has decided to be prepared well in advance and hence it will expand its facility in Maharashtra further.

The company currently has a huge facility in Chakan near Pune where it assembles various car models which are imported as CKD kits. This has resulted in a great employment opportunity for people in the area. The state government has also been supportive and the clearances required have been given on time to avoid unnecessary delays. Impressed by this attitude, the bosses at Mercedes-Benz Germany want to expand the current facility itself to keep things simple.

The current Mercedes-Benz facility is capable of producing 40,000 units which is more than sufficient to cater to the local demand for the next few years. But labour being cheaper here makes sense for the brand to start manufacturing cars and exporting them to other countries. This would help price new cars even more competitively as they would attract lower duties if some components are sourced from local vendors who are capable of producing quality goods.

With rising disposable incomes and a desire to flaunt status, sales of such cars is bound to rise. With Mercedes being very active and launching cars with new design philosophy, they are likely to attract everyone from the youth to the older generation. The three pointed star has always been the first choice of big honchos who now even have the choice of Mercedes-Maybach models if they desire more luxury. The decision to assemble the Maybach S500 is also an excellent move by the brand.

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