By Santanu Choudhury 
 

NEW DELHI--Daimler AG's Mercedes-Benz unit said on Thursday that it has doubled production capacity at its luxury car-assembly plant in India to 20,000 vehicles a year to meet growing demand for its products.

The German auto maker also began assembling its sixth model in India--the GLA compact sport-utility vehicle--in the plant at Chakan in the western Indian state of Maharashtra.

Mercedes-Benz India has invested more than 10 billion rupees ($156 million) in the facility since 2009, it said in a statement. The Indian unit sold 11,213 vehicles in the fiscal year ended March 31, a 17.5% increase.

Write to Santanu Choudhury at santanu.choudhury@wsj.com

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