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Luxury car maker Mercedes-Benz India is pinning hopes on India's growth story for which it is investing Rs 250 crore (Rs 2.5 billion) to double production capacity by the end of this year, an official of the company said.
"According to our estimates, the luxury car market in India will be four per cent of the total passenger car segment by 2020," Boris Fitz, Director (sales and network development), Mercedes-Benz India said.
By 2020, the passenger car segment volume would be nearly eight million units, he said.
Fitz, while launching an A-Class compact car here today, said that at present the luxury car segment was two per cent of the total passenger car segment in the country.
He said that Mercedes-Benz is bullish on India for which it is doubling capacity from 10,000 units per year at present to 20,000 units per year.
The cost for expansion of production would be Rs 250 crore (Rs 2.5 billion), he said.
The company sold 7,138 units in 2012. Fitz said the company was aiming at double digit growth in 2013.
He said that while the growth in passenger car segment had been southwards, the growth in the luxury car segment has been just the opposite.
This is mainly on account of buyers of luxury cars being insulated from the economic cycles.
The company plans to launch a slew of products in 2013.
Photograph, courtesy: Kind courtesy, Mercedes Benz