Mercedes increases investment in Chakan plant

Mercedes-Benz has charted out its India growth plans, which involve an increase in its investment to Rs 850 crore in its Chakan plant by 2014 and local assembly of several new models in the coming years, beginning with the new M-Class.

The German giant, which began its India operations in 1994, moved to its Chakan plant in 2009 with an initial investment of Rs 250 crores. These figures will now be scaled up to in excess of Rs 600 crore with the setting up of Mercedes’ own technologically advanced paint shop. The new paint shop is slated to go operational by October this year with an annual capacity of 20,000 units, which can be extended up to 40,000 units annually.

The latest investment is in addition to the Rs 480 crores carried out by Mercedes-Benz in setting up of its dealer/service network across 31 cities in India. Apart from the current 31 dealerships and 41 service outlets, Mercedes will further expand its network in a sustained manner for mid- and long-term growth.

Peter Honegg, MD & CEO, Mercedes-Benz India, said, “We are bullish about the dynamic Indian market and this is reflected in our long-term commitment towards it. The investment of Rs 850 crores will help us strengthen our production and operational capabilities with regards to our existing products and our exciting and aggressive product offensive, which we are readying for this market. This investment will enable Mercedes-Benz India to be future ready.”