Mercedes to Build Big SUVs in India

Daimler AG plans to begin producing the Mercedes-Benz GL-Class big SUV at its factory in Pune, India, in September.

India will be the only location besides Daimler's U.S. plant in Alabama to make the GL. The Pune facility also makes Mercedes C-, E- and S-Class cars and ML-Class crossovers.

Mercedes hopes the 7.7 million rupee (€109,000) locally built GL will help it capture a bigger slice of the India's fast-growing SUV segment. The country's SUV sales soared 52% to 553,000 units in the 2012-2013 fiscal year nearly one-third of its passenger vehicle market.

Mercedes, which delivered 7,100 luxury vehicles in India last year, is aiming for double-digit sales growth in 2013. The brand will introduce imported diesel-powered versions of its A-Class hatchback and B-Class MPV there, starting next month.