Honegg: Growth drive
Calcutta, Sept. 5: German premium car maker Mercedes-Benz is looking to increase its investments in India to Rs 850 crore by 2014.
The company started its operations in 2009 at Chakan in Pune at an investment of Rs 250 crore, which was raised to over Rs 600 crore.
Part of the higher investments was on a paint shop, which will become operational by October. The paint shop will have an initial capacity of 20,000 units per annum, which can be doubled at a later stage.
The company also plans to set up an additional line at Chakan as it prepares to start making some of the models in India.
“The investment of Rs 850 crore will help us strengthen our production and operational capabilities with regard to our existing products,” Mercedes-Benz India managing director & CEO Peter T. Honegg said.
According to him, the investment will also help the company line up products for the domestic market.
Piyush Arora, technical director of Mercedes-Benz India said, “The company’s aggressive growth plan includes the local manufacturing of several new models in the coming years, beginning with the new M-Class.”
A company spokesperson told The Telegraph that a part of the investment would go into the setting up of an additional line at Chakan that has an annual capacity of about 10,000 units per annum and operates in two shifts.
Mercedes-Benz India locally assembles the C-Class, E-Class and S-Class sedans. The company is set to manufacture the new M-Class and looking to introduce the G-class.
The company said its dealers were also investing over Rs 480 crore across its 31 showrooms and 41 service outlets in 31 cities.