Mercedes mulls to introduce compact cars in India by 2012

The Luxury car brand Mercedes-Benz is going to unveil its compact model car range towards the end of 2012 in India according to a top executive. It has been in the news for some time that the luxury brand Mercedes-Benz for the first time is coming out with a variety of compact model cars.

It is believed that the cars will have the left-hand-drive option initially, in the one that will be introduced globally, first in Europe later this year and in India towards the end of 2012, informed the Mercedes Benz India MD and CEO, Peter Honegg. This German auto giant is ready with their left-hand drive option, compact models that are manufactured in Germany and Hungary for their launch in Europe expected to happen by the end of this year. The company is planning to bring their completely knocked down (CKD) units to India by 2012-2013 and assemble it here, as they do not have the compact class facility at their Chakan plant near Pune. Mr Honegg had however, declined to state the expected price for these compact hatchbacks.

Currently Mercedes India plant manufactures only class C, S and E, at their Chakan facility near Pune, Maharashtra. On the overview they are hoping to sell over 7,000 units against last year’s 5,800 units’ sale as they have sold around 3, 800 units already in the first half of 2011.

Mr. Honegg had also remarked that they have invested Rs 400 crores to buck up the paint shop at their Chakan plant which is capable of producing 20,000 units, out of which 10,000 units production happen in each of the two shift operations that take place at the plant. They hope to increase it to 40,000 units in the near future.

There are about 30 dealers pan India at present and would like to build up their network in cities like Delhi, Mumbai and Chennai. They have already expressed their intention to lease out their car models in India as well, targeting the public listed companies first to test the waters and then approaching the individuals. Currently they have around 30% of their vehicles leased out.