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Old 11-08-2006, 09:08 AM   #1
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Default DaimlerChrysler plans to build 2nd auto plant in India

DaimlerChrysler plans to build 2nd auto plant in India


NEW DELHI - Germany's DaimlerChrysler AG plans to invest about $55 million to build a second auto plant in India, a news report said Wednesday.

The company is scouting for a suitable location in western Maharashtra state, the Business Standard reported quoting the state's elected head, Chief Minister Vilasrao Deshmukh.

DaimlerChrysler has one plant in that state, in the city of Pune, that makes about 2,000 cars a month. The company may choose Pune for the second plant as well, the report said quoting unnamed company officials.

The new plant will likely have the same capacity as the existing one and employ about 350 people, the report said.

The company could not be immediately reached for comments.

In recent years, car sales in India have soared on the back of rising middle class income, driving global automobile companies to expand operations here.

Also, many automakers are trying to take advantage of low labor and material costs by setting up plants that export cars to other parts of the world.

DaimlerChrysler's move to expand its India operation comes three months after General Motors Corp. announced it would set up a new export-oriented manufacturing facility in Maharashtra with an investment of $280 million.
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