Mercedes-Benz is investing Rs.150 crore more at its facility in Chakan near Pune, to add an assembly line that will double capacity to 20,000 units a year to meet growing demand for its luxury cars and sport-utility vehicles in India.
The Daimler AG unit is likely to add the CLA compact sedan to the list of models it puts together at the Chakan facility when the new line becomes operational over the next few months. The CLA will be launched on January 22 and the company has started taking booking for the vehicle.
The current round of investment will take the total money the company has invested in the plant to 1,000 crore, he said.
Assembling vehicles locally will allow the company to significantly reduce prices because of the variation in import taxes. Kits from where the vehicles are assembled locally are taxed at 24-30% (if the engine is assembled locally) or 40% (if the engine isn't assembled here), compared with 167% for a vehicle imported as fully built.
Mercedes-Benz India delivered 10,200 cars and SUVs in 2014, the highest ever and 13% more than the previous year. It is aiming for another strong year with double-digit growth in 2015, despite the local auto market remaining sluggish.
To entice buyers, it will be bringing in 15 models this year, including facelifts and new variants. The CLA is the first of this series hitting the local market.
The Daimler AG unit is likely to add the CLA compact sedan to the list of models it puts together at the Chakan facility when the new line becomes operational over the next few months. The CLA will be launched on January 22 and the company has started taking booking for the vehicle.
The current round of investment will take the total money the company has invested in the plant to 1,000 crore, he said.
Assembling vehicles locally will allow the company to significantly reduce prices because of the variation in import taxes. Kits from where the vehicles are assembled locally are taxed at 24-30% (if the engine is assembled locally) or 40% (if the engine isn't assembled here), compared with 167% for a vehicle imported as fully built.
Mercedes-Benz India delivered 10,200 cars and SUVs in 2014, the highest ever and 13% more than the previous year. It is aiming for another strong year with double-digit growth in 2015, despite the local auto market remaining sluggish.
To entice buyers, it will be bringing in 15 models this year, including facelifts and new variants. The CLA is the first of this series hitting the local market.
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