Business · Companies · 9 hrs ago
Mercedes-Benz plans to expand localisation and sourcing in India
Mercedes-Benz says it wants to expand its manufacturing and supplier links in India as it seeks to grow in the country.
The German carmaker already assembles more than 11 models at its plant in Chakan, near Pune, using imported kits and locally sourced components.
It sold 15,190 vehicles in India from January to September 2026, up 8% from the same period a year earlier.
The company has announced an additional investment of ₹200 crore this year, bringing its total investment in India to ₹3,200 crore.
Mercedes-Benz may use Indian suppliers for its global operations, and says its India engineering centre will become more important to its worldwide research and development network.
The luxury car segment makes up just over 1% of India's passenger vehicle market, while Mercedes-Benz sees potential for growth over the next five years.
A decision to make more parts locally has not been made; the company says it could consider this as the market grows.
Mercedes-Benz plans to deepen its manufacturing presence in India through greater localisation and could use Indian suppliers to support its global operations.
The company announced an additional investment of ₹200 crore in India this year, bringing its cumulative investment there to ₹3,200 crore.
It sold 15,190 vehicles in India from January to September 2026, an 8% increase year on year.
Global chairman Ola Kallenius said the company was on course for its highest-ever annual sales in India if the current trajectory continued.
Mercedes-Benz currently assembles more than 11 models at its plant in Chakan, Pune.
- Who
- Mercedes-Benz, whose global chairman is Ola Kallenius.
- What
- The company plans to deepen localisation and is considering greater use of Indian suppliers for its global operations.
- When
- The company announced an additional investment this year; the article was published on 4 November 2026.
- Where
- India, including Mercedes-Benz’s manufacturing plant in Chakan, Pune.
- Why
- The company sees potential for growth in India and aims to strengthen its presence in the market.
This story does not have two clearly opposing sides.
Mercedes-Benz sold 15,190 vehicles in India, up 8% year on year.
The Economic Times published an article about Mercedes-Benz’s plans for India.
- India sales, January-September 2026
- 15,190 vehicles
- Year-on-year sales growth
- 8%
- Additional investment announced this year
- ₹200 crore
- Cumulative investment in India
- ₹3,200 crore
- Chakan plant
- More than 11 models assembled
- India supplier exports
- The company said it is more likely than not to use India as a supply base for operations outside the country.
What people are saying
It's more likely than not that we will use India as a source also for a supply base outside of India
That decision has not been made. Let me be absolutely clear that that's not the decision that we have made today.