Sure, we already know that Mercedes-Benz spends heaps of cash on R&D in the Indian market and that they have still lost out to their fellow German rival (BMW) in the luxury car rat race, but now Mercedes-Benz India is undergoing a huge initiative to take on anyone who enters its segment. According to reports, the German giant is planning to invest an additional Rs 350 crores into their Indian strategies to help in the localization and assembly of new cars in India. The money will go into expanding the Chakan plant to add 2 more assembly lines and will be used to assemble new cars instead of bringing them in as CBUs.
This move could seriously lower the outrageously high duty tariffs and hence bring the prices of their cars down, and that will in turn help to attract new buyers and also bring their market share up to get back at BMW. They also have plans to assemble all their cars in India by 2015 and will hence invest another 1,000 crores at that time. Now that is called big spending.
