Mercedes-Benz India plans to add a car assembly line to its factory in Chakan, spending INR1.5bn (US$23.6m) to double capacity to 20,000 units.

The Economic Times said the latest spend takes the tally at Chakan to INR10bn.

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Sources said Mercedes was expected to begin assembling the CLA compact sedan at the plant. The company has started to take orders for the model which will be launched on 22 January.

Mercedes-Benz India managing director Eberhard Kern said: “We intend to introduce 15 new products in 2015, some of them will be completely new products without any predecessor. Our focus will also be on lifestyle and expansion of the AMG portfolio in the country.”

The automaker plans to open 15 new dealerships in India this year, taking the total to 80. It also plans to open three AMG Performance Centres and introduce tailored service packages like Star Care and Star Care Ease.

Kern added, “There will also be special packages which aim to provide [customers] with the lowest cost of ownership starting at only INR1.99 per kilometre.”

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