Mercedes Benz plans to expand production capacity in India three-fold by 2015-16 to 30,000 per annum. The German automobile maker also prepares for much larger expansion in the long term — 100,000 by 2020.
"We already started manufacturing M Class in India. We will build B Class and then A Class in India," said Peter Honegg, managing director, Mercedes Benz India.
"There will be a new SUV on A Class platform by 2014-15. We will be fully loaded when GLK will be in our portfolio by 2015-16. Given all these plans we will need 30,000 production capacity."
Mercedes Benz in India currently has the capacity to build 10,000 cars a year.
"Our paintshop which will be inaugurated shortly will have the capacity of 20,000 units," he said.
"By 2020 or so India is expected to be the second largest car market with 11 million cars. And considering luxury cars will grow faster than the car market, the segment size will be 400,000-500,000. This will be divided among 4-5 players and we will need a capacity of 100,000 or so," he said.