Published on Wed, Apr 09, 2008 at 18:10 | Source : CNBC-TV18
Updated at Wed, Apr 09, 2008 at 21:14
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Mercedes Benz rolls out 20,000 Made in India car
In the first quarter this year, Mercedes has seen 60% growth in sales and to accommodate this kind of growth, the company is setting up a new assembly plant in Pune.
In the first quarter this year, Mercedes has seen 60% growth in sales and to accommodate this kind of growth, the company is setting up a new assembly plant in Pune.
The E-Class Mercedes marks 20,000 Made in India cars for the company. This is perhaps fitting that it is an E-Class because almost half of all Mercedes cars sold in India are E-Class. For Mercedes, the Indian drive has been one of the most special. The company says it will grow more than 50% in the next 2-3 years.
"With the current developments, we are on a very good path and I am sure this path will continue for the next 5-10 years," said Wilfried Aulbur, MD and CEO, DaimlerChrysler India.
Last year, Mercedes sold 2,500 cars, which is more than half of India's luxury car market of 4,500 units. This year, the company says it will sell more than 4,000 units. And it's not just cars; Mercedes has introduced the Actros range of trucks, which will also contribute significantly to volumes.
"Our task is to get significant and enough volumes in the market. It is currently not a demand problem we are having," said Wilfried Aulbur.
And to satisfy this robust demand, Mercedes is moving out of its current facility to a plant that is five times larger.
The present facility has a capacity of 4,000 units annually. But the new plant at Chakan will start with a capacity of 5,000 units. And it's not the only the popular cars that will be assembled there. The company will also assemble the Actros range of trucks along with bus chassis. Mercedes Benz buses are expected to hit Indian roads in the second half of 2008.
The new plant will come up at an investment of Rs 250 crore and can be ramped up to a capacity of 20,000 units over the next 5-8 years.
Mercedes Benz India Ltd rolled out its 20,000th'Made in India' car. In the first quarter of this year, the company had 60% growth in sales.
Mercedes Benz is extremely bullish on the Indian market. Mercedes Benz Worldwide is looking at 5-7% growth in worldwide sales. A majority of that growth comes from markets like India and China which are the emerging markets. So, India is right at the centre of the Mercedes Benz growth universe. Mercedes Benz sold 60% more than what they did last year and they are saying that that kind of growth will continue.
Last year, they sold about 2,500 cars. They have set themselves a conservative target of 3,000. But they are actually telling us that they will probably hit 4,000 and continue growing.
They are moving to a new facility in Chakan, which has the potential to be five times larger than the current one. So, they could be potentially moving to a 20,000-unit facility. They will start with a capacity of 5,000 units for next year. As and when demand grows, they will ramp-up to 20,000. It could be for the next 5-8 years. So, in the next 5-8 years, Mercedes will be increasing their sales five times.
By Vivin Mathew, CNBC-TV18 
