German carmaker Mercedes-Benz is planning to invest INR4bn ($71.5m) over next few years to improve the capacity of its manufacturing plant in India by three times.
According to the carmaker, the additional investment will bring the carmaker's investment in Indian sub-division to more than INR10bn ($178.94m).
The additional investment will allow the company to increase its production capacity from the current 10,000 models per year to nearly 25,000-30,000 units per year by 2014-2015, which will support at least six products to its existing CKD operations.
Mercedes Benz India managing director & CEO Peter Honegg said was quoted by Times Of India as saying that the company has just increased paint-shop capacity at Pune plant from 10,000 units per year to 20,000 units at an investment of INR1.8-2bn.
"With a little more investment and additional shifts, the capacity will go up to 30,000 and even 40,000 units per annum. Alongside, investment is required in creating new assembly lines," Honegg said.
Mercedes-Benz said that the ML and GL from its existing portfolio and new models B, A, CLA and GLA will be added to CKD operations.
The German carmaker, which currently assembles C, E and S Class vehicles in India, is also planning to launch A Class hatch, CLA Class SUV in 2013, and GLA Class small sedan in 2014 which will be produced in CKD format.
By 2020-21, Mercedes is planning to increase its Indian plant capacity to 90,000 units per year.
