Market Developments
DaimlerChrysler to build US$67m factory in India
New Delhi – DaimlerChrysler AG, the world’s second largest luxury car maker, will invest US$67 million to build a factory in India, where an expanding economy and rising disposable incomes have spawned a set of high-spending customers. The factory, to be located at Chakan in the western state of Maharashtra, will employ 350 people initially according to the announcement made in May.
Luxury carmakers such as BMW and Volkswagen’s Audi unit have either opened factories or dealerships to sell their cars in India as economic growth increases the number of millionaires. Carmakers last year announced a combined US$5billion of investments in new factories in India by 2012.
DaimlerChrysler currently assembles the E-Class, C-Class and S-Class models at a factor in Pune in Maharashtra. The land for the existing factory is owned by Tata Motors Ltd, India’s largest truck and bus maker. After construction of the factory, the company will shift all its existing operations to the new factory. – Bloomberg
Posted : 14 June 2007