Daimler India looks to replicate trucks biz success in buses

Global commercial vehicle major Daimler is looking to replicate the success of its trucks business in India in the bus segment as well with its new bus plant in the country slated to be operational by second half of next year.

"In the second half of next year, we will launch buses under the Mercedes Benz and Bharat Benz brands. Indian bus market is huge. (Bus operations) will be fully comparable to what we have achieved in trucks in India," Daimler India Commercial Vehicles (DICV) Managing Director and CEO Erich Nesselhauf told PTI.

Daimler's bus plant located in Oragadam, near Chennai is coming up at an investment of Rs 424 crore. It is expected to roll out buses in 9 tonne, 16 tonne and above 16 tonne categories in both front and rear engine configurations.

While he declined to elaborate details of product plans for India, Nesselhauf said: "We will come out with innovative concepts, which we will not disclose right now...Also a totally different concept, which we don't have in Europe."

Daimler will also export buses manufactured in India to other countries.

The German commercial vehicle maker said it has sold over 15,000 trucks in India since September 2012. Daimler India exports India-made FUSO trucks in Sri Lanka, Bangladesh, Zimbabwe, Brunei, Zambia, Kenya and Tanzania.

Asked about the 'Make in India' initiative by the Narendra Modi government, Marc Llistosella, Senior Vice-President, Marketing, Sales and Aftersales, Trucks Asia & DICV said there is a perception problem regarding quality of 'Made in India' trucks in its export markets.

"There is a lot of hesitation and reluctance for made in India trucks. Brand 'Made in India' should not be seen as a disadvantage," he said, adding "we have to work to improve this perception".

Daimler said its Indian operation will break even by year 2016. Daimler India Commercial Vehicles (DICV) is a 100% subsidiary of Daimler AG, Germany.