Mercedes to double capacity

NEW DELHI: Betting on the growing appetite of Indians for luxury cars, Daimler AG has decided to double the production capacity of its Mercedes-Benz cars and increase the number of locally-assembled models.

Mercedes-Benz has posted a 78.5% rise in sales during April-November this year to 3827 vehicles and expects numbers to move up rapidly in line with the growing numbers of millionaires and billionaires in India. "There has been a huge mindset change in India and it is now acceptable for people to invest in luxury cars," Wilfried Aulbur, MD and CEO of Mercedes Benz India, said on Wednesday. The rapid expansion of luxury brands has also been aided by a very positive economic outlook and the surge in real estate and stock markets. "Salaries are rising and so are the aspirations," he added.

The company will start second shift operations at its unit near Pune, where it assembles models from the C, E and S-Class range. "We assemble around 5,000 units on a single-shift basis. The additional shift will help us double these volumes," Aulbur said. The company is also investing Rs 200 crore for a paint shop to cater to India-made cars. "The paint shop will have a capacity for 20,000 cars and will become operational by 2012."

He also said that there were plans to localise more and more models. "We are gearing up to harness the additional growth opportunities. We plan to indigenise more products in India, focus upon local sourcing and optimise local value addition. We have decided to increase the portfolio of locally produced cars beyond the S-, E- and C- Class range starting 2013," he said. The growth in luxury car market has prompted companies like Mercedes Benz, BMW and Audi to focus aggressively on India. BMW last year beat Mercedes Benz in local market sales and Audi is also fast catching up.

Read more: Mercedes to double capacity - The Times of India http://timesofindia.indiatimes.com/business/india-business/Mercedes-to-double-capacity/articleshow/7068236.cms#ixzz17aQVAGoM