Ground-breaking of Bus Plant: Daimler Expands Commercial Vehicle Business in India

Ground-breaking of Bus Plant: Daimler Expands Commercial Vehicle Business in India
March 2014
  • Investment of roughly 50 million EUR
  • Plant to be completed in the second quarter of 2015
  • BharatBenz and Mercedes-Benz buses for volume and premium segments
Chennai/Stuttgart – Just 18 months after launching the new truck brand BharatBenz, Daimler is now further expanding its commercial vehicle business in India. Representatives of Daimler AG, Daimler Buses and Daimler India Commercial Vehicles (DICV) laid the foundation stone for a bus plant at an event attended by staff members, dealers, suppliers and journalists in Chennai, South-East India. The plant will be built within the existing premises of DICV and will be completed in the second quarter of 2015.
“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.
Daimler will invest roughly 50 million EUR in the bus plant. Spread across an area of 113,000 square meters, the plant will be constructed within the existing premises of DICV. The plant will have an installed capacity of 1,500 vehicles per year in the initial phase, and can be expanded to 4,000 units subsequently.
BharatBenz and Mercedes-Benz buses
The product range will cover front-engine 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. Relying on and further expanding its proven dealership and service network, the wholly-owned Daimler subsidiary DICV will be in charge of sales. Indian customers can also rely on one-stop maintenance, repairs, and after-sales solutions.
“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”, says Hartmut Schick, Head of Daimler Buses, about the product concept.
Marc Llistosella, Managing Director and CEO of DICV, adds: “Thanks to our highly motivated staff, we succeeded in launching our truck business exactly as planned. Therefore, I am confident that we will manage to replicate this success on the bus market.”
Long-term growth potential
After China, India is home to the world’s second largest bus market. Despite a difficult market environment, sales amounted to almost 40,000 buses in the past 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. A look at China equally underlines India’s huge potential. India is the second-most populous country in the world after China, where more than 100,000 buses are sold each year.
About Daimler India Commercial Vehicles (DICV)
In September 2012, Daimler India Commercial Vehicles (DICV), a wholly-owned subsidiary of Daimler AG, began to sell BharatBenz trucks in India. In the meantime, the youngest brand in the Daimler Trucks family has launched truck models in all of the important segments, ranging from nine to 49 tones GVW; three tractor-trailers and one truck for construction-mining purposes were the latest additions to the growing product lineup. DICV was named “CV Maker of the Year” as part of the renowned “CV Apollo Awards.” DICV sold roughly 6,500 trucks in 2013, thus advancing to the fourth place on the Indian market. Since May 2013, FUSO trucks have rolled off the assembly line in Chennai as well. They are dedicated for export to Asian and African growth markets. After completion of the bus plant in the second quarter of 2015, Chennai will be the first Daimler plant worldwide to produce trucks, buses, and engines for a total of three brands.

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The bus plant will be built on a surface of roughly 113,000 square meters and has an initial annual capacity of 1,500 vehicles.
Markus Villinger, Head of Daimler Buses India, Hartmut Schick, Head of Daimler Buses, Dr. Wolfgang Bernhard, Member of the Daimler Board of Management Responsible for Daimler Trucks & Buses, and Marc Llistosella, Managing Director & CEO of Daimler India Commercial Vehicles Pvt. Ltd. (f.l.t.r.) lay the foundation stone for the bus plant.