Mercedes-Benz starts phase-II production at Chakan plant

Rolls out its locally assembled GLA-Class SUV

Luxury car maker Mercedes-Benz India today announced the expansion of its Chakan plant by setting up phase-II production facility at the centre. The company also rolled out its locally assembled GLA-Class SUV from this unit.

Mercedes-Benz India has invested around Rs 150 crore for the facility. The new manufacturing facility augments the production capacity to 20,000 units annually, making it the largest installed production capacity for any luxury car maker in India. Total investment in the manufacturing facility stands over Rs 1,000 crore since inception.

The plant was inaugurated by Maharashtra chief minister Devendra Fadnavis and Union environment minister Prakash Javadekar.

"The new generation cars now account for nearly 30 per cent of our volumes as these are able to attract first-timers to the luxury segment. India is one of the focus markets for Mercedes Benz globally, and with the addition of a new plant, we are getting future ready," said Eberhard Kern, managing director & CEO, Mercedes-Benz India.The GLA contributes 30 per cent of Mercedes-Benz India's new generation car sales.

Kern added, "Rolling out our first ever locally manufactured GLA and commencing production from India's largest installed luxury car production facility are two very significant accomplishments for Mercedes-Benz in India. These are a result of our long-term vision for the Indian market. Our endeavours are all driven by our customer-centric approach."

The company's SUV portfolio of GL- and ML-Class models has added to the demand as also the new-generation of cars such as A-, B-, CLA- and GLA-Class. The CLA will start production from the local assembly by end of this year and A- and B-Class models come in thereafter. GLA becomes the first new generation car to be locally produced in India. The locally assembled GLA 200 CDI Style is priced at Rs 31.31 lakh and GLA 200 CDI Sport at Rs 34.25 lakh (ex - showroom Pune).

According to Kern, the luxury car sales in India are expected to go up to nearly 40,000 units this year against the 33,000 units sold last year. Around 32,000 units were sold in 2013.

"We believe that the best is yet to come for India from Mercedes Benz. We grew by 40 per cent in the first quarter; the growth in the second quarter has been even steeper, so we are heading towards a very strong double digit growth in 2015. With the start of a new plant, we are future ready. We think this market will touch 1 lakh cars per annum by 2020 and we will have a sizeable share in that," added Kern.