Mercedes-Benz passenger cars in 2009

Kolkata, Sep 8: Looking at the growing pie of the Indian luxury vehicle market, Daimler-Chrysler India is setting up its own plant in Pune targetting to roll out Mercedes-Benz passenger cars from the beginning of 2009.

Involving an investment of 50 million Euros (Rs 278.77 crores) the plant, to be located at Chakna, will also be producing commercial vehicles and luxury buses under Mercedes brand, Daimler-Chrysler India Managing Director and CEO Wilfried Aulbur announced here today.

"We have decided to put up our first plant in India targeting an annual production of 5,000 units. We have already purchased the land and expect commissioning by the beginning of 2009," he said while launching the premium Mercedes-Benz CL-Class in the city.

The new production facility, having five time more space than the company's existing rented plant in Pune, would also become the centre of production for 'Atros'--a heavy mining vehicle which is likely to hit the road by this year.

Production of the proposed luxury bus, which will add to the company's growing fleet in the Indian stable, will start next year, Dr. Aulbur said.

The CEO said the company would start producing the trucks and buses at its rented facility before shifting to the new plant to be located on about 5,000 acres of land. "India is going to grow and that drives us to make the investment. We are looking at the country's luxury car segment which is expected to shoot up with the GDP growth," he said.

In reply to a question, Dr Aulbur said Daimler-Chrysler had 50 to 60 per cent share of the 6,000 unit Indian luxury car market.

Last year the company had sold 2121 cars while the sales figure between January and August in 2007 stood at 1681 units showing a 22 per cent growth.

Dr Aulbur said the proposed luxury bus would be competing with the Volvo line of buses in the Indian market.

UNI