In October, authorities in Maharashtra, India, confirmed that Mercedes-Benz had enhanced wastewater and air pollution management at its only manufacturing plant in the country. This comes after earlier inspections revealed environmental compliance issues at the Chakan-based factory.
Compliance Improvements Follow Environmental Concerns
Following an initial surprise inspection in August, state pollution control officials observed lapses in Mercedes-Benz’s wastewater and emissions management. These included improper sewage treatment, pollution-generating compounds in the paint section, and missing emission control devices. On September 19, officials issued a formal notice to Mercedes-Benz citing nine areas of non-compliance, prompting immediate action from the company.
Mercedes-Benz Responds to Compliance Concerns
Mercedes-Benz, which leads the luxury car market in India, refuted claims of environmental non-compliance in a letter dated September 26, stating that its operations were environmentally responsible. In an October follow-up inspection, government officials noted substantial improvements, including enhanced wastewater treatment and effective air pollution controls, particularly in the painting area.
Political and Environmental Implications
The initial findings sparked political debate in Maharashtra, as opposition leaders raised concerns about the potential impact on the region’s attractiveness to foreign investors. With air and water pollution high on India’s agenda, strict regulations aim to mitigate industrial pollution—a priority for both the central and state governments.
Mercedes-Benz’s Plans for Expansion in India
Despite the compliance issues, Mercedes-Benz remains committed to growth in India, having announced plans to launch over a dozen models and invest $24 million in the country this year. Located near other major automotive players like Volkswagen and Mahindra & Mahindra, the Chakan plant is a central part of Mercedes-Benz’s strategy to tap into India’s expanding luxury car market. In 2022, Mercedes-Benz led India’s luxury car segment, selling a record 17,400 vehicles and outpacing competitors.
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