DaimlerChrysler to sign deal for India car plant

Reuters / January 3, 2007 - 8:00 am MUMBAI -- DaimlerChrysler will sign an agreement with the western Indian state of Maharashtra on Thursday, Jan. 4, for a new plant to make its premium Mercedes-Benz cars, a company spokesman said.

He declined to comment on the size of the investment or the capacity of the plant, which would be located near Chakan, 110 kilometers, or 70 miles, east of Mumbai.

Local media reports have indicated the company would invest about $56 million (2.5 billion rupees) in the plant.

The German-based company presently makes about 2,000 cars annually in a facility leased from Tata Motors Ltd. in Maharashtra.

Daimler sold 2,121 units in India in 2005, nearly doubling sales from the previous year, it said. It sells its Mercedes-Benz S-class, E-class and C-class sedans in India.

Annual passenger vehicle sales in India are forecast to nearly double to 2 million units by 2010 on rising incomes and new launches