Force Motors to assemble engines for Mercedes S-Class

Y@SH · 26th September 2011, 12:12

Source: IAB

The decision was taken by Mercedes Benz India Pvt. Ltd after the government raised customs duty on import of pre-assembled parts from 10% to 30%.
The step is implemented to keep the price of the S-Class at a competitive level. The new S-Class with a locally assembled heart would be available in the next 4-5 months.
The engines for the S-Class would be assembled by Force Motors Ltd which assembles engines for the C- and E- Class models.
For a fact, Mercedes Benz India has been losing Rs. 10 lac on every S-Class sold because of the additional 20% duty since March 2011. Mercedes Benz India would have been more comfortable if they were informed beforehand about the change in duties as it takes 8-10 months to develop a new assembly line.
On 28th February of this year customs duty was raised from 10% to 60% on pre-assembled parts such as engines which brings it on par with the CBU units due to the taxation.

amtak · 26th September 2011, 12:15

This is good news for Force. I wonder how many Merc owners must be knowing that their engine has been assembled by Force Motors.

TheStig · 27th September 2011, 01:40

Not many in fact. The majority assume the engine comes as a single piece from Germany and is simply put into the car here.

But Even though Force Motors puts them together, there seems to be no difference in quality. So I guess this is a welcome move by MB.

Aroy · 27th September 2011, 12:02

So we can expect truck and bus engines to be assembled by Force for MB soon. If they are successful, then, can we hope for the high selling CBUs transforming to SKD soon?

Sahil · 27th September 2011, 17:06

Damn, I had no idea Force does high quality work like assembling engines for MBIL.

The S-class is due for a replacement next year, not sure if it would be a good time to begin assembling engines for the current model. I presume the new model will have a new heart too.

Mpower · 27th September 2011, 17:42

Which engine are they talking about? V6 diesel? E also uses the same.

Kartik Krishnan · 27th September 2011, 17:43

As long as Force is doing a great job with the assembly and not affecting the quality of the final product in any way, this is good news for the market.

And surely enough MBIL wouldn't just hand over the contract unless they're throughly satisfied with the capability of the company.

26th September 2011, 12:12	#1
Y@SH BHPian Join Date: Sep 2011 Location: Mumbai Posts: 454 Thanked: 909 Times	Force Motors to assemble engines for Mercedes S-Class Source: IAB The decision was taken by Mercedes Benz India Pvt. Ltd after the government raised customs duty on import of pre-assembled parts from 10% to 30%. The step is implemented to keep the price of the S-Class at a competitive level. The new S-Class with a locally assembled heart would be available in the next 4-5 months. The engines for the S-Class would be assembled by Force Motors Ltd which assembles engines for the C- and E- Class models. For a fact, Mercedes Benz India has been losing Rs. 10 lac on every S-Class sold because of the additional 20% duty since March 2011. Mercedes Benz India would have been more comfortable if they were informed beforehand about the change in duties as it takes 8-10 months to develop a new assembly line. On 28th February of this year customs duty was raised from 10% to 60% on pre-assembled parts such as engines which brings it on par with the CBU units due to the taxation.
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26th September 2011, 12:15	#2
amtak Senior - BHPian Join Date: Oct 2006 Location: Mumbai - The city of Sea Link!!! Posts: 2,914 Thanked: 899 Times View My Garage	Re: Force Motors to assemble engines for Mercedes S-Class This is good news for Force. I wonder how many Merc owners must be knowing that their engine has been assembled by Force Motors.
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27th September 2011, 01:40	#3
TheStig BHPian Join Date: Jul 2010 Location: Trivandrum Posts: 172 Thanked: 163 Times View My Garage	Re: Force Motors to assemble engines for Mercedes S-Class Not many in fact. The majority assume the engine comes as a single piece from Germany and is simply put into the car here. But Even though Force Motors puts them together, there seems to be no difference in quality. So I guess this is a welcome move by MB.
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27th September 2011, 12:02	#4
Aroy Senior - BHPian Join Date: Aug 2010 Location: Delhi Posts: 2,582 Thanked: 2,739 Times View My Garage	Re: Force Motors to assemble engines for Mercedes S-Class So we can expect truck and bus engines to be assembled by Force for MB soon. If they are successful, then, can we hope for the high selling CBUs transforming to SKD soon?
	() Thanks

27th September 2011, 17:06	#5
Sahil Distinguished - BHPian Join Date: May 2004 Location: Bombay Posts: 6,292 Thanked: 7,605 Times	Re: Force Motors to assemble engines for Mercedes S-Class Damn, I had no idea Force does high quality work like assembling engines for MBIL. The S-class is due for a replacement next year, not sure if it would be a good time to begin assembling engines for the current model. I presume the new model will have a new heart too.
	() Thanks

27th September 2011, 17:42	#6
Mpower Senior - BHPian Join Date: Mar 2005 Location: Bangalore Posts: 10,409 Thanked: 1,729 Times View My Garage	Re: Force Motors to assemble engines for Mercedes S-Class Which engine are they talking about? V6 diesel? E also uses the same.
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27th September 2011, 17:43	#7
Kartik Krishnan BHPian Join Date: Oct 2010 Location: Mumbai Posts: 101 Thanked: 15 Times	Re: Force Motors to assemble engines for Mercedes S-Class As long as Force is doing a great job with the assembly and not affecting the quality of the final product in any way, this is good news for the market. And surely enough MBIL wouldn't just hand over the contract unless they're throughly satisfied with the capability of the company.
	() Thanks