Asia Bizz: Popular luxury car maker Mercedes Benz reportedly aims at coping with the increase in the demand of luxury cars in the Indian market by increasing the production at their Chakan plant situated near Pune, in the state of Maharashtra. The production can be increased to 20,000 units per annum as needed.

For now, the Mercedes A Class and B Class hatchbacks and SUVs are all set to be assembled in their new assembly lines at the Chakan plant for the time being. But later on, the company will need to look in to dedicated assembly sections as demand increases. Moreover, the company also plans to increase the investments this year to set up a paint shop at the Chakan plant itself.

At present, Merceded depends on Tata Motors paint shop for their operations. With the help of setting up their own paint shop, the company will be saving a lot of revenue.

Reports state that Mercedes also depends on Force Motors for the supply of assembled engines as well as transmissions. For the time being, the Chakan plant in Pune manufactures vehicles that are exclusively meant for the domestic Indian luxury car market. This means that the plant does not cater to any of the exports.

Apart from the Chakan plant, Mercedes Benz also has productions operations in Chennai in the state of Tamil Nadu at the Daimler Commercial Vehicle plant. The plant here rolls out the Actros Tipper trucks at the time when the Chakan plant in engaged in the production of the luxury passenger cars and buses.

Mercedes will soon be launching the City Bus for the Indian market and has announced the inauguration of their City Bus facility in the Chakan plant. The City Bus was launched by the company with exciting new features with high fuel efficiency.