Chennai, June 04, 2015 (Online News Ind Team): Daimler India Commercial Vehicles Pvt. Ltd. (DICV), a 100% wholly owned subsidiary of Daimler AG, Stuttgart, Germany, today announced the inauguration of its new bus manufacturing facility in Oragadam and unveiled its second wave of products BharatBenz and Mercedes-Benz buses as well as a new range of new BharatBenz high-power engine trucks and BharatBenz heavy duty tractors.
The new state-of-the-art bus manufacturing plant, constructed within the existing premises of DICV spread across an area of 27.91 acres, will manufacture and assemble buses under two brands: Mercedes-Benz and BharatBenz. With an investment of INR 425 Cr, the bus plant is set up for an initial capacity of 1,500 units which can be further expanded to 4,000 units subsequently.
Dr. Wolfgang Bernhard, member of the Board of Management responsible for Daimler Trucks and Buses, Hartmut Schick, Head of Daimler Buses, Marc Llistosella, Head of Daimler Trucks Asia, Markus Villinger, Managing Director Daimler Buses India, Erich Nesselhauf, Managing Director and CEO, Daimler India Commercial Vehicles and Mark Nodder, Chairman and CEO, Wrightbus were present at the ceremony in Oragadam.
Speaking on the occasion, Dr. Wolfgang Bernhard, member of the Board of Management responsible for Daimler Trucks and Buses, said, "We have become firmly established in the Indian market with our BharatBenz brand, despite only operating in the market since 2012. We continue to strengthen our presence in the Indian commercial vehicle market with new products, now also including buses. In doing so, we are opening a new chapter of growth.” He added, "This investment represents the ongoing pursuit of our strategy of targeted expansion for our global market presence.”
Hartmut Schick, Head of Daimler Buses, specified, “We see enormous potential for growth in the Indian market. For example, we expect the volume of the Indian market for buses weighing over eight tons to more than double by the year 2020. Our two-brand strategy allows us to offer our customers in the region the right products and services for them."
Marc Llistosella, Head of Daimler Trucks Asia, stated, “Opening another production facility and introducing a second wave of products in such a short time is another testimony for the strength of our Indian operations. And in combination with our worldwide FUSO network, this makes the recipe for sustainable growth at Daimler Trucks Asia.”
With the opening of the bus plant DICV is expanding its business and becomes a full-fledged CV manufacturer in the Indian market. It will adopt a two-fold strategy with BharatBenz and Mercedes-Benz buses that will cater to the Indian customer. BharatBenz buses manufactured at the Oragadam plant will be front-engine for short distance travel targeting school, staff and tourist transportation. The premium segment will be addressed with Mercedes-Benz rear-engine buses for inter-city transportation. The new plant will manufacture buses with gross vehicle weight of 9, 16 and above 16 ton range.
“The growth in the industry will position India as the second largest bus market with high strategic relevance for Daimler Buses. The new bus plant will create 1,300 job opportunities in the state, 300 for DICV and additional 1,000 at Wrightbus International. I would like to thank our highly motivated staff for completing the project in record time”, said Markus Villinger, Managing Director of Daimler Buses India.