Daimler plans another factory in subcontinent

DaimlerChrysler AG plans to set up a new car factory in western India.

The German-based auto maker plans to sign an agreement with the government of Maharashtra state today. Demand for automobiles is rising in India with an expanding economy and higher incomes.

Last year, auto makers including Volkswagen AG and General Motors Corp. announced a combined $5 billion (U.S.) of investments in new factories in India by 2012.

DaimlerChrysler currently assembles E-class, C-class and S-class models at a factory in Pune in Maharashtra.

from star staff and wire services