Daimler AG Crosses the Billion Dollar Investment Mark in India, Pushes Mercedes India to the top spot
On Thursday, Daimler AG inaugurated its second vehicle assembly plant in the state of Maharashtra, thereby doubling its annual capacity to 20,000 units in the country. A couple of days back, the company even set up a bus division in the southern part of India, taking the company’s total investment in the country past the billion dollar mark.
This makes our country the largest aggregator of Mercedes cars in the whole world, which is quite a significant title to say the least. What this does is that it underscores Daimler’s intent to invest more money to address the thriving demand for high-end luxury vehicles in the country. While inaugurating its second plant in Chakan, Managing Director or Mercedes-Benz India said that the country is the most focussed market for the Stuttgart-headquartered automaker and the latest investment underlines the company’s commitment towards the same.
Daimler was able to grow by more than 40 percent in the first quarter of 2015 and their growth in the second quarter is even more. This means that Mercedes is heading towards a very strong double-digit growth this year. The company believes that the market will touch the 1 lakh cars per annum mark by the year 2020 and they will be able to gain a good share in the Indian market with the start of their new plant.
After locally producing the GLA, India has become Daimler’s only base to make three car assembly lines which includes compact cars, sedans and SUVs. The company has come a long way since it first entered the country in the 1950s after a tie up with Tata Motors to make trucks. Today, Daimler is the only European manufacturer in India that has all its operations in India, right from finance, research and development for both cars and trucks and manufacturing lines as well.
With an investment of Rs. 250 crores in 2009, the company has quadrupled their overall investment to Rs. 1000 crores in not much time. Its new generation design language and new compact cars has helped the company gun for the number one spot in 2015 after it was seen to be losing ground to rivals BMW and Audi a few years back.
Daimler had also invested Rs. 4400 crores into a full-fledged commercial vehicle manufacturing plant along with a test track in Chennai and also a fortnight ago put in an additional Rs. 450 crores in a new bus manufacturing plant.