German luxury carmaker Mercedes-Benz will invest Rs 200 crore in India this year on new products, manufacturing operations, and digitisation to strengthen its position after posting record sales of 17,408 units in 2023, a top company official said on Monday.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, highlighted the company's plans to mark 30 years in India by investing an additional Rs 200 crore into their Pune factory, bringing the total investment in India to Rs 3,000 crore.
"This year marks a special year as we celebrate 30 years of Mercedes-Benz in India. We are going to invest Rs 200 crore more in our factory in Pune. This requires a total investment of Rs 3,000 crore in India now. So that's a strong statement of intent," Mercedes-Benz India Managing Director and CEO Santosh Iyer told PTI.
The year 2023 marked a significant milestone as the company achieved its highest-ever sales in India, recording 10 per cent growth with 17,408 units sold. This surpassed their previous best in 2022, when they reached 15,822 units.
For 2024, Iyer expressed optimism about aiming for "double-digit" growth despite potential fluctuations in supply and demand. Currently, the company has an order bank of 3,000 units.
Mercedes-Benz India has plans to introduce over 12 new car lines in 2024, including three electric vehicles, half of which will be in the top-end vehicle segment priced at Rs 1.5 crore onwards. Emphasising the company's focus on EVs, Iyer noted that these vehicles constituted 4 per cent of total sales in 2023 and experienced triple-digit growth.
SUVs remain a significant portion, accounting for 55 per cent of total sales, while sedans comprise 45 per cent.
Looking ahead, Iyer anticipates EVs contributing to 20-25 per cent of their sales within the next four years. To enhance customer service accessibility, Mercedes-Benz India plans to establish 20 new workshops in 10 new cities.
Commenting on Tesla's potential entry into the Indian market, Iyer expressed confidence in the government's policies, emphasising the need for a level playing field for both existing and new manufacturers investing in India.
(With PTI inputs)
