NEW DELHI: In a giant step-up for the Indian luxurious automobile market, Mercedes-Benz is seeking to double put in capability at its India manufacturing unit to 40,000 vehicles each year because the German large charts out a technique to keep up its lead within the nation by launching new vehicles and increasing its footprint.
The transfer, which is in early phases proper now, will see the corporate increase annual put in capability at its manufacturing unit – situated outdoors Pune – from the present 20,000 items. This would be the first main train undertaken by a high luxurious carmaker to increase its base and investments in India as demand for costly vehicles begins to rise sooner than the broader market.
Santosh Iyer, MD & CEO of Mercedes-Benz in India, informed TOI that the corporate has began the method to “determine and take a look at” future growth wants as gross sales transfer in the direction of its peak capability. “Whereas we’re absolutely targeted on 2024 proper now, we might want to increase if the present progress charges proceed,” he stated, as the corporate introduced gross sales of 17,408 items for 2023 at a progress of 10% over the 15,822 items bought within the earlier yr.
The corporate, which is finishing three many years in India, stays bullish on the luxurious market that hit file highs of about 47,000 items final yr and reveals no indicators of weak point.
It plans to launch over a dozen new vehicles in 2024 – together with three electrics – and can make investments over Rs 200 crore in the direction of manufacturing operations, new product startups, digitisation.
The Pune manufacturing unit is constructed on a 100-acre plot, and Iyer stated any new capability growth would occur on the similar location. “We’ll see how this yr goes and solely then take a name on doubling capability.” Iyer stated the Indian market is exhibiting indicators of sustained sturdy demand, particularly as the typical promoting worth of its autos has gone up from Rs 57 lakh in 2018 to Rs 88 lakh final yr. “This isn’t aspirational consumption, however true luxurious consumption. We’re very a lot targeted on the top-end of the luxurious market.”
The transfer, which is in early phases proper now, will see the corporate increase annual put in capability at its manufacturing unit – situated outdoors Pune – from the present 20,000 items. This would be the first main train undertaken by a high luxurious carmaker to increase its base and investments in India as demand for costly vehicles begins to rise sooner than the broader market.
Santosh Iyer, MD & CEO of Mercedes-Benz in India, informed TOI that the corporate has began the method to “determine and take a look at” future growth wants as gross sales transfer in the direction of its peak capability. “Whereas we’re absolutely targeted on 2024 proper now, we might want to increase if the present progress charges proceed,” he stated, as the corporate introduced gross sales of 17,408 items for 2023 at a progress of 10% over the 15,822 items bought within the earlier yr.
The corporate, which is finishing three many years in India, stays bullish on the luxurious market that hit file highs of about 47,000 items final yr and reveals no indicators of weak point.
It plans to launch over a dozen new vehicles in 2024 – together with three electrics – and can make investments over Rs 200 crore in the direction of manufacturing operations, new product startups, digitisation.
The Pune manufacturing unit is constructed on a 100-acre plot, and Iyer stated any new capability growth would occur on the similar location. “We’ll see how this yr goes and solely then take a name on doubling capability.” Iyer stated the Indian market is exhibiting indicators of sustained sturdy demand, particularly as the typical promoting worth of its autos has gone up from Rs 57 lakh in 2018 to Rs 88 lakh final yr. “This isn’t aspirational consumption, however true luxurious consumption. We’re very a lot targeted on the top-end of the luxurious market.”
