Pune, Aug. 26: Mercedes-Benz plans to use more local components in its assembly operations at Chakan.
“At present, we have 40 per cent localisation levels in the cars we assemble here. This will increase to 50 per cent in the coming years,” Piyush Arora, director (technical) and member of the board of management, Mercedes-Benz India Pvt Ltd, today said in Pune at the rollout of the GL-Class, an SUV. Merc is now assembling the C, E, S, ML and GL-Class locally.
The company is looking to double the capacity of its plant to 20,000 units per annum early next year after having reclaimed the No. 1 slot in the premium segment in July by selling 810 cars against Audi’s 705 units. It has also raised its investment in the Chakan plant, near here, to Rs 800 crore.
The company is also considering assembling its hatchbacks A and B-Class, but the mother plant in Germany is unable to send kits owing to a huge global demand for both these compact cars.
“Right now, we are negotiating for an increased allotment of CBU (completely built, or fully built, unit) versions of the A and B-Class with our headquarters,” managing director and CEO Eberhard Kern said.
Both Kern and Arora will be in Stuttgart next week to ask for a greater allocation of A and B-Class for India.
The introduction of compact hatchbacks, which constitute 25 per cent of its sales, has helped Mercedes to regain its sales momentum.