We all know that luxury car manufacturer BMW and Audi have started manufacturing cars in India for the domestic market. But the oldest player in luxury segment Mercedes, is coming up with a new plant at Chakan, Maharashtra. The company plans to roll out 12,500 units per year for the domestic and neighbouring markets. The plant will manufacture passenger and commercial vehicles.

Mercedes has been a favourite car of high society in India. Now it has been a huge hit with the creamy layer of North India. By manufacturing passenger cars in India, the company will be able to drop down prices of some vehicles. The lower price tag will make Mercedes cars affordable to many more segments of consumers.

Mercedes and BMW are running neck to neck in the luxury car segment in India. With a new plant and lower prices Mercedes-Benz will give a tough competition to BMW in future.