German automaker Mercedes-Benz' subsidiary, Mercedes-Benz India is planning to start production at its new production unit in Chakan near Pune, Maharashtra.
The move is expected to double the company's production capacity in India, and the total annual production is expected to reach 20,000 units.
Mercedes-Benz India sales and network development VP Boris Fitz said the plant expansion is in the final stage and in the process of getting all approvals.
"This calendar year, we are expecting to grow in double digit," Fitz added.
"The capacity expansion has been planned to make the company future-ready as the luxury car market is going to expand at a higher growth as compared to the normal passenger car market."
Mercedes-Benz India had opened its first domestic production facility in 2009 that has capability to manufacture 10,000 vehicles per year.
In 2013, Mercedes-Benz had reportedly delivered over 9,000 vehicles across the nation.
Luxury vehicle segment occupies 1.5% of the total car market in India and the company expects it to reach 4% by 2022.