Daimler's Mercedes facility at Chakan commences operations

Mercedes-Benz India (MBI), the fully-owned Indian subsidiary of Daimler AG, yesterday inaugurated its new 100-acre manufacturing facility at Chakan near Pune.

Mercedes-Benz India inaugurated its new manufacturing plant Set up at a cost of Rs300 crore, the project was completed in just 13 months, which the company claims is a record of sorts. The plant was inaugurated by state chief minister Ashok Chavan in the presence of a large number of state ministers and political dignitaries.

The plant will have the capacity to initially make up to 5,000 passenger cars and 1,200 commercial vehicles annually, employing around 500 people. It is spread over 100 acres, with separate assembly facilities for passenger cars and CVs. The facility has been planned with an eye to future expansion needs.

Wilfried Aulbur, chief executive officer of Daimler's Indian arm, said the plant will initially produce Mercedes-Benz cars on a single shift. "This is a totally demand-driven market and we will gradually increase it to three shifts depending on the demand," he told reporters at the inauguration.

The plant is designed to manufacture the company's current local-production portfolio - the Mercedes-Benz C, E and S class. It is also flexible to accommodate additional production of other models from the company's range if required.

The new plant, set up with an investment of 50 million euros ($63.7 million) has a capacity to make 5,000 cars and 1,200 trucks and buses a year on single shift.