Mercedes seeks govt. support to expand manufacturing in India

German luxury carmaker Mercedes-Benz is planning to expand its local manufacturing in India with the government's support in tax concessions in states such as Maharashtra where its factory is located.

GLE-Class, the first product which the luxury car maker launched in India since Folger took over on October 1, is also the first model that the company is making locally in India from day one.

Local production of the other seven models in India had started at least six months back. Local production allows the company to make its vehicles more affordable as it eliminates between 60 percent and 100 percent import duty.

In 2007, Mercedes acquired 100 acres in Pune where it so far invested Rs. 1,000 crore. In June, it doubled production capacity to 20,000 units a year and the plant became the only factory outside Germany to produce the super luxury Maybach S500, which priced at Rs. 1.67 crore.

Mercedes-Benz India recently launched a new nomenclature for its SUVs. The German luxury carmaker has launched 13 products in India so far and two more are expected to come before the year end.