Daimler India lays foundation stone for bus manufacturing plant

Daimler India lays foundation stone for bus manufacturing plant

Daimler India Commercial Vehicles (DICV), a wholly owned subsidiary of German auto giant Daimler AG, on Thursday laid the foundation stone for a new bus manufacturing & assembling facility in Chennai.

The upcoming manufacturing facility, which will be set up at the company's existing site of Oragadam plant near Chennai, will produce both intra-city and inter-city (luxury and premium) buses.

The Indian arm of Daimler AG has plans to produce two different sets of buses under two different brands, viz. Bharat Benz and Mercedes Benz, to compete with existing competitors.

Daimler AG board member Wolfgang Bernhard, who is responsible for trucks & buses business of the company, said that India's bus market would likely grow at an unprecedented rate in the coming years, and Daimler wanted to become a leading player.

Speaking on the topic, he 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 company will invest nearly Rs 425 crore to set up the plant, which will have an installed annual capacity of 1,500 units in the initial phase. Bernhard has announced that upon ascertaining the demand from the Indian market, the production could be increased to 4,000 units per annum.

Daimler India's bus manufacturing plant is expected to start production in the first quarter of 2015.

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