German automobile major Daimler-Chrysler, makers of the Mercedes car, has planned to set up its second automobile manufacturing facility in Maharashtra. The project will entail an investment of Rs.250 crore. This will also be the second facility in India.

The company is scouting for a suitable location and is evaluating the industrial park at Chinchwad, where it has a plant that makes 2,000 cars per month. The company might also consider alternative locations like Chakan or Talegaon in Pune.

Background: Daimler-Chrysler entered in India in November 1994 when a joint venture between Daimler-Benz and Tata Motors called Mercedes-Benz India was set up. The joint venture was formed to produce and sell Mercedes Benz cars in India. In September 2001, Mercedes-Benz India became a 100 per cent subsidiary of DiamlerChrysler AG of Germany and in November 2001, the Indian outfit was renamed to DiamlerChrysler India Pvt Ltd.

Currently, the Indian arm of DaimlerChrysler produces the E-Class and S-Class range of Mercedes-Benz. It also sells other models in India which are imported.