LONDON: Germany’s leading car manufacture company Daimler Benz’s understood to be planning to manufacture its Mercedes range of luxury cars in India but mainly for export to the countries in the far east, according to a report in “India mail” weekly here.
It has not yet been decided whether it will be a joint venture, but whatever the complexion of the enterprise, it will be export oriented, the report said quoting German sources.
The report said the new government in New Delhi is eager to get to grips with India’s development and is therefore seriously considering the Mercedes proposal as it will give a big investment boost.
Recently, the German company decided to shift its production away from home to reduce costs and meet the Japanese challenge, especially in the luxury range from Toyotas. Further exposure to US dollar exchange fluctuations is another reason, the report said.
India is familiar territory to Daimler Benz, The German car giant originally tied up with Tatas to produce trucks. The Indian company now produces some of the finest heavy goods vehicles in the world.
Article extracted from this publication >> July 12, 1991
