German luxury car major Mercedes-Benz Monday said luxury car market in India is expected to be about 280,000 units by 2020.
Mercedes-Benz India director, Sales and Network Development, Boris Fitz said by 2020 the luxury car market in the country would be about four percent of the total passenger car market from the current two percent.
"Our projection is by 2020, total passenger car market would be 7 million to 8 million units, out of which 4 percent would be luxury car," Fitz told reporters here after launching A-Class compact luxury car here.
"We actually believe that by 2020 the luxury car market would be around 270,000 units to 280,000 units in India," he said.
Witnessing a steady growth in demand for luxury vehicles in the country, the car major is doubling capacity of its Chakan plant near Pune, investing Rs.250 crore.
"We will pump in Rs.250 crore to double the capacity to about 20,000 units by the end of this year," Fitz said.
More From This Section
While the company started assembling its sports utility vehicle M-Class at Chakan facility last year, it would commence assembling GL-Class at that plant from September this year.
The all-new compact luxury A-Class vehicle will initially be available in the country as completely built unit (CBU).
Asked from when the firm would start local assembling of A-class or B-Class in India, Fitz said, "We are in talks with our head office. It depends on their decision."