Mercedes-Benz India is looking at expanding local manufacturing, a plan that though depends on getting support such as tax concessions from Maharashtra, the state where its factory is located, new managing director and chief executive Roland Folger said. The first product the luxury car maker launched in India since Folger took over on October 1, GLE-Class, is also the first model that the company is making locally from day one.Local production of the other seven models it makes in India started at least six months after the launch. Local production allows the company to make its vehicles more affordable — vehicles imported as fully built attract between 60% and 100% import duty — thereby helping sell more here.

 In 2007, Mercedes acquired 100 acres in Pune where it has so far invested Rs 1,000 crore. In June, it doubled production capacity to 20,000 units a year and the plant became the only factory outside Germany to produce the super luxury Maybach S500, which, priced at Rs 1.67 crore, is the costliest car to be made in India. 

Currently, 80% of the cars sold in India by Mercedes are produced locally.

As much as 60% of the components used in these are sourced locally. It has four local suppliers who supply engines, gear box, axle, cockpit, flooring and wiring harness.

Between January and September this year, the company sold 10,079 vehicles in India compared with 7,529 units in the year-earlier period, recording growth of 34%. In 2014, it sold 10,201 units. The carmaker expects strong double-digit growth next year as well.