After making its presence felt in the Indian commercial vehicle segment in the last 18 months, the German auto giant Daimler AG has decided to go a step ahead by setting up a bus manufacturing plant at the existing site of its Indian subsidiary?s Oragadam plant near Chennai. The plant will make both intra-city and inter-city (luxury/premium) buses. The company laid the foundation stone for the new plant on Thursday.
As per plans, Daimler India Commercial Vehicles (DICV), the 100% wholly-owned subsidiary of Daimler AG, will make two different sets of buses under two different brands ? Bharat Benz (for intra-city with front engine) and Mercedes Benz (for inter-city luxury coaches with back engine) ?to take on the competitors in the 9-tonne to above 16-tonner players in India, said Daimler AG board member Wolfgang Bernhard, responsible for Daimler trucks & buses. The plant expect to go on stream in mid-2015, he added.
Bernhard said: ?The Indian growth story is intact and we are here to become the major player in both trucks and buses segments. Being the global leader in buses, Daimler sees huge opportunity in India on a long-term basis. The bus market is expected to explode in the years to come in India and Daimler want to become a leading player.?
?On the basis of our strong truck business, we are now pressing ahead in the Indian bus market. For that purpose, we are consistently using existing suppliers, our production site and our sales network in India,? he said further. The number of dealerships will go from 75 to 100 soon.
Being set in with an estimated investment of 50 million euros, the plant will produce both intra and inter-city buses with complete localisation (except small portions in luxury coaches). The plant will produce 1,500 buses per annum.
Daimler India has partnered with Wrightbus, Northern Ireland-based leading global player in bus body building, for its front-engined buses. Wrightbus? facility will be part of the new bus plant. The bus body will be superior in terms of technology and reliability, meeting Daimler?s global standards of quality and efficiency, said Marc Llistosella, MD & CEO, DICV.
DICV will supply chassis for both Bharat Benz and Mercedes Benz buses. ?We are looking at complete localisation of both brands to make it more affordable as well to meet Indian conditions. In just 12 months the customers can benefit on the total cost of ownership,? he pointed out.