Pune: Mercedes Benz India Pvt. Ltd has started local production of its compact luxury sports utility vehicle GLA 200 CDI Style. Priced at 31.31 lakh to 34.25 lakh (ex-showroom Pune), it’s the first of the new generation models from the stable of the German luxury carmaker to be produced locally in the phase II of Chakan in Maharashtra.

It is for the first time that Mercedes-Benz is locally producing compact cars in its global assembly network along with sedans and SUVs, the company said. Apart from India, Mercedes-Benz has plants in Thailand, Vietnam, Malayasia, Indonesia and Brazil, where a new assembly plant is currently under construction and is expected to open in 2016.

Eberhard Kern, managing director and chief executive at the company, said the local production of the GLA was prompted by the encouraging response to the model. With the second phase of the facility going on stream, the company now has a total production capacity to turn out 20,000 cars per year, the largest for a luxury car company in India. Since its inception, Mercedes has invested 1,000 crore into the facility.