Mercedes- Benz plans to invest 700million Euros to enhance its production capacity for commercial vehicles. Mercedes has its manufacturing unit in Chennai. It currently operates its manufacturing from its Pune plant where it not only manufactures commercial vehicles but also its passenger cars. The increased capacity of Chennai plant will help in better production capacity for its commercial vehicles.
This year Mercedes expects lower sales volumes due to unfavorable market conditions. However, it remains optimistic about the market growth in India and intends to expand its market presence. The time frame of the investments is yet not disclosed by the company.
“The first half of the year was difficult in terms of sales. We have sold 1,500 units so far this year and we hope the second half would be better as retail orders are gaining pace and customers are approaching banks for car loans,” said Wilfried G Albur, managing director and chief executive of Mercedes-Benz India.