Tuesday, February 21, 2012
By Manoj Kumawat
Mercedes Benz new cars production to cost around Rs 350 crores in India
The German auto-giant, Mercedes Benz has not been much impressive last year in terms of sales, as other auto-grands like Audi and BMW grabbed a larger amount of its share. In order to lower down the cost of production and cost of purchase, Mercedes Benz India is now looking ahead to invest a bulky amount of Rs 350 crores in its Chakan facility in order to start up with two more production lines. Mercedes Benz would utilize these production lines to produce 4 – 5 new car models locally rather than importing as a CBU.
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Mercedes Benz is primarily looking ahead to manufacture the enhanced wheelbase versions of models of the C Class and the E Class, upcoming Mercedes-Benz MUV whiz the B-Class, Mercedes Benz A Class hatchback, upcoming Mercedes Benz GL Class and 2012 M Class. Moreover, the auto-manufacturer is also looking forward to locally assemble the upcoming compact crossover, the GLC Class which would be brought in the domestic market to compete with BMW X1.
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Other than locally assembled C Class, E Class and S Class, all the other models of Mercedes Benz are directly imported as CBU, which involves high custom duties. With the commencement of CKD operations, the luxury car maker is speculating to curtail the purchase cost for the buyers. The lower cost of locally build Mercedes Benz products would enable the company to bring back its lost glory as the no. 1 luxury car maker in next couple of years. The car maker is targeting to manufacture whole line up in India, in coming years. For this the company might consider to invest around Rs. 1000 crores during 2014 – 2015.
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At present, Mercedes-Benz lineup in India is filled with 12 enticing machines i.e. Mercedes Benz C Class (luxury saloon), Mercedes Benz E Class (luxury saloon), Mercedes Benz CL Class (luxury saloon), Mercedes Benz CLS Class (luxury saloon), Mercedes Benz G Class (crossover), Mercedes Benz GL Class (crossover), Mercedes Benz M Class (crossover), Mercedes Benz R Class (crossover), Mercedes Benz S Class (luxury saloon), Mercedes Benz SL Class (Sports coupe) Mercedes Benz SLK Class (Sports Coupe) and Mercedes Benz SLS Class (Sports Coupe).