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Mercedes Benz considering manufacturing of engines and gear boxes in India Print E-mail
Written by Viswanath   
Tuesday, 02 September 2008
Pune: The Indian luxury bus segment now has a new entrant with German auto giant Mercedes-Benz launching its intercity bus in Pune. The Rs 80 lakh bus has been built on Benz’s O500 R/RF chassis being developed at the Pune plant. Most of the components were imported from Brazil and assembled at Sutlej Motors in Jalandhar where the body building of the Mercedes Benz buses will be done.

Harald Landmann, head of the Mercedes Benz/Daimler bus business told newsmen that the company is at present looking for suppliers for some of the components, excluding the engine and gear box, being used in Mercedes buses.

Following the launch, Harald Landmann said that although the company has yet to figure out when the entire bus building operation, including development of engine and gear boxes, will happen in India, it is looking at the possibility of setting up a manufacturing unit over next three to five years in India. According to reports, Mercedes-Benz is planning to invest Rs 2,500 to Rs 3,000 crore to set up a manufacturing facility.

Landmann added that the company will proceed step by step in its industrialization strategy in India.  In the next two or three years, the company plans to top the charts not only in the luxury bus segment but also in the low-cost bus segment.

“We are excited to enter the Indian Market with our premium products and we are satisfied that we found a local market-partner for our future business in this region”, Mr. Harald Landmann added.

The collaboration of Daimler and Sutlej Motors encompasses the development, production, marketing, sales and after sales of luxury rear engine coaches. The Mercedes-Benz chassis will be manufactured by Mercedes-Benz India, the body will be built up by Sutlej Motors. Mercedes-Benz India then will handle Sales and After-Sales of the coaches.

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