Mercedes-Benz has added a new production line at its Chakan plant in Pune to double its capacity. The annual capacity at the plant now stands at 20,000 units, up from 10,000 units earlier.

Moreover, Mercedes has also announced plans to assemble the GLA SUV at the Chakan plant, which will become the company’s sixth local model after the C-class, the E-class, the S-class, the M-class and the GL-class.

The carmaker will, however, only assemble the diesel GLA here and the petrol variant will continue to be imported into the country as CBUs. The prices for the locally assembled GLA 200 CDI start at Rs 31.31 lakh (ex-showroom, Pune), a difference of over Rs 2 lakh from the imported car.

With the addition of the new production line, the Pune facility now carries an investment of over Rs 1,000 crore. This expansion clearly indicates that the demand for luxury cars in India is on a rise and Mercedes-Benz is working towards keeping up with this exigency.

The move also comes at a time when the German manufacturer is witnessing record sales. Mercedes-Benz recorded a growth of 53 percent (year-on-year) in March 2015. Moreover, it also recorded its highest-ever fiscal year sales; selling 11,213 units in April-March 2015, up 17.5 percent from last year (9,548 units), making Mercedes the first luxury carmaker to sell over 11,000 units in a fiscal year.

Locally assembled GLA 200 CDI prices (ex-showroom, Pune)
GLA 200 CDI Style – Rs 31.31 lakh
GLA 200 CDI Sport – Rs 34.25 lakh