Wolfgang Bernhard, Daimler AG Board member responsible for Daimler Trucks & Buses said, "On the basis of our strong truck business, we are now pressing ahead in the Indian bus market."
The new plant is expected to be completed by second quarter of 2015.
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Spread over in 27.91 acres in the existing Daimler facility, the new bus plant will make and assemble buses under the Mercedes-Benz and BharatBenz brands.
The buses will be offered in 9t, 16t and 16t categories in both front and rear engine configurations.
Initial capacity of the plant is 1,500 units and can be expanded to 4,000 units later.
Daimler India has partnered with Wrightbus, a leading global player in bus body building for its front-engined buses. The new bus body facility will be part of the new bus plant.
The existing and upcoming dealership network of DiCV, which caters to BharatBenz trucks will also cater to Daimler Bus business.