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Mercedes Doubles Assembly Capacity in India

Daimler AG's Mercedes-Benz unit in India has doubled annual capacity to 20,000 units at its assembly plant in Chaken.

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Daimler AG's Mercedes-Benz unit in India has doubled annual capacity to 20,000 units at its assembly plant in Chaken.

The facility currently makes C-, E- and S-Class sedans, ML-Class midsize SUVs and GL-Class 7-passenger crossover vehicles from kits supplied from Germany. The $165 million expansion enables Chaken to make more of the popular GLA small crossover, including a diesel variant.

Mercedes-Benz sales in India rose 13% to 10,200 units last year and surged 40% to 3,600 vehicles in January-March 2015. The company predicts India's luxury-car market will expand to 40,000 units this year compared with about 33,000 units in 2014.

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