Mercedes-Benz adding assembly line at Chakan plant

Mercedes-Benz India is adding an assembly line at its facility in Chakan. The addition of the line will double the plant's capacity to 20,000 units a year. The company has received the necessary environment clearances and is expected to begin production from the extended facility.

For the additional assembly line, Mercedes-Benz is investing Rs. 150 crore. This will take the total investment that the company has made in the plant to Rs. 1,000 crore. The new line will enable the company to start assembly of the CLA sedan, which is scheduled to be launched in India on January 22, 2015.

In 2014, Mercedes-Benz has had a very strong year in terms of sales, recording a growth of 13% over 2013. The company sold a total of 10,201 cars in the country in the January-December 2014 period, which is the highest it has ever managed in a calendar year.

Cars imported as CKD kits and assembled in India attract much lesser taxes and duties compared to those imported as CBUs. This, in turn, helps manufacturers price them more competitively.

Considering the growing demand for its cars and the benefits of assembling cars locally, the new assembly line is expected to help Mercedes-Benz greatly in its expansion plans.

Mercedes-Benz has revealed that it plans to launch 15 models this year, including facelifts and new variants.

Source: Economic Times