Mercedes-Benz (Thailand) will spend THB200m (US$6.7m) this year to raise production capacity in Thailand and THB1bn (US$33.5m) to add five more dealer and service centres nationwide.

The investment will increase production capacity at its Thonburi assembly plant in Samut Prakan, by up to 3,000 units a year from the current 16,000.

Mercedes-Benz expects rising demand in Thailand for premium cars from both the middle- and high-income segments, as economic growth is projected to continue at 5% this year.

President and CEO Alexander Paufler, said: "We have to prepare our capacity for on-shelf products, adopt new technology to meet every segment's demands and strengthen our networks."

The carmaker currenty operates 29 dealers and service centres. The first new centre this year will be introduced in Nakhon Ratchasima at the end of April, with the next one planned for Hua Hin. 

Others are slated for Greater Bangkok.

Mercedes-Benz sales in Thailand increased 34% to a record of 6,274 in 2012 and is targeting 10% sales growth this year, with at least six new models scheduled to be introduced.