The Indian arm of Mercedes-Benz was the first luxury car manufacturer to set foot in the domestic auto market, way back in 1994. The subdivision of Daimler Group looks prepared to augment its market presence by increasing its investment and embarking on an expansive strategy directed towards the Indian market.
In 2009, the company established its state-of-the-art manufacturing plant spanning over 100 acres in Chakan, near Pune, which quickly became the fastest green-field unit ever to be established. The Chakan plant is considered as one of the best Completely Knocked Down (CKD) assembling facilities of Mercedes-Benz spread across the world.
Mercedes-Benz India ramped up its initial expenditure of Rs. 250 crore by more than Rs. 600 crore, in order to construct its own cutting-edge paint shop adept in water based painting. The technically advanced paint shop is expected to commence operations by October 2012 and will operate at 20,000 units annually, which can be further developed towards 40,000 units per year.
Speaking on the company's current campaign and future prospects, Peter T. Honegg, Managing Director (MD) and CEO, Mercedes-Benz India, said, “We are bullish about the Indian market and this is reflected in our long term commitment towards the dynamic Indian market. The investment of Rs. 850 crore will help us strengthen our production and operational capabilities with regards to our existing products and our exciting and aggressive product offensive which we are readying for the Indian market. This investment will enable Mercedes-Benz India to be future ready.”
Currently, Mercedes-Benz India assembles its flagship models like the S-Class, E-Class and C-Class at the Chakan facility. Daimler AG, parent company of Mercedes-Benz, has been instrumental in identifying emerging markets like India and in a first, will soon start assembling its flagship M-Class Sports Utility Vehicle (SUV) in the country. The M-Class car along with its SUV cousins is currently solely assembled at Daimler AG's production facility in Tuscaloosa, Alabama in USA.
Shedding light on the company's first production operation outside USA, Piyush Arora, Director, Technical, Mercedes-Benz India, said “Mercedes-Benz India’s aggressive growth plan includes the local manufacturing of several new models in the coming years, beginning with the new M-Class. This fresh investment is in sync with the growth expectations from the Indian market and will further strengthen the range of locally manufactured Mercedes-Benz models from the Indian operations.”
Apart from the Rs. 850 crore investment in the country, Mercedes-Benz India has further planned an expenditure of Rs. 480 crore, to be used at its 31 stores and 41 service workshops, present across 31 Indian cities. The company is also reworking its marketing strategy by stretching its country wide presence, in order to reach the previously ignored pockets of the Indian society. Accordingly, Mercedes-Benz India seems set to gain a stronger foothold in the Indian market by adding new touch points each year to its portfolio. The new strategy will surely earn dividends for the company towards mid and long term growth.
