Daimler expands CV business in India, to roll out buses by mid-2015

Daimler India Commercial Vehicles (DICV), the 100 percent subsidiary of Daimler AG, has laid the foundation stone for its new Rs 450 crore bus manufacturing plant in India. The all-new facility, located in DICV’s existing plant site and spread across 27.91 acres, will be ready for production by the second quarter of 2015.

Banking on synergies with the DICV truck-making operation, it will roll out front and rear-engined BharatBenz and Mercedes-Benz buses for the volume and premium segments, respectively. This move comes 18 months after DICV launched the BharatBenz truck brand in India; the manufacturer has till now sold a total of 7,500 trucks in the Indian market.

“On the basis of our strong truck business, we are now pressing ahead on the Indian bus market. For that purpose, we are consistently using existing suppliers, our production site and our sales network in India,” said Dr Wolfgang Bernhard, Daimler AG Board member responsible for Daimler Trucks & Buses, on the occasion of the ground-breaking ceremony today.

The product range will cover front-engined buses under the BharatBenz brand, adapted to the specific needs of the Indian bus volume segment. The models will receive a body specifically developed by the Irish bodybuilder Wrightbus. The state-of-the-art bus body building facility will be part of the new DICV bus plant. In addition, the existing rear-engine chassis dedicated to the premium segment will be nationalised under the Mercedes-Benz brand.

In both front and rear engine configurations, the new Indian buses will be available with a gross vehicle weight of nine, 16, and above-16 tonnes. DICV will handle sales and also maintenance, repairs, and aftersales.

“Our two-fold strategy with BharatBenz and Mercedes-Benz buses allows us to cater to the different needs of Indian customers in a perfect way. In terms of safety, fuel efficiency, quality, and comfort, both brands will set new standards in the Indian bus sector,” said Hartmut Schick, head of Daimler Buses.

Marc Llistosella, MD and CEO of DICV, added: “Thanks to our highly motivated staff, we succeeded in launching our truck business exactly as planned. I am confident that we will manage to replicate this success on the bus market.”

Long-term growth potential

After China, where over 100,000 buses are sold each year, India is home to the world’s second largest bus market. Despite a difficult market environment, sales amounted to almost 40,000 buses last year which is almost twice the volume of the Western European bus market. In view of India’s projected population growth, experts see a further increasing demand for mobility.

Photograph: The bus plant will be built on a surface of roughly 113,000 square metres and has an initial annual capacity of 1,500 vehicles.