Daimler inaugurates Bus plant near Chennai

Just a year after laying the foundation stone, Damiler India Commercial Vehicles has inaugurated its manufacturing facility in Oragadam, Tamil Nadu. The company has already been producing trucks within the proximity of the same facility, and has now kick-started production of its new range of buses. 

DICV will produce buses at this facility which will then be sold under the Mercedes-Benz and Bharat Benz banner. With an investment of Rs 425 crore, this bus plant has an initial production capacity of 1,500 units which they later intend to expand to 4,000 units. 

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." 

With the inauguration of the new plant, Daimler has expanded its commercial vehicles business to cater to varied Indian customers. They now plan to implement a two-fold strategy with Bharat Benz focusing its energies on front-engined short distance travelling like for school buses and tourist transportation. And with Mercedes-Benz they will continue to cater to a slightly premium audience with their rear-engined offerings for inter city transportation. 

With the inauguration of the new plant, DICV has also created 1,300 job opportunities in the state. They have also been working on constantly expanding the reach and now have 80 dealerships that help cover nearly 85 per cent of the Indian market.