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Mercedes-Benz plans to launch city-buses, luxury coaches

— Sushanta Patronobish

The Managing Director and CEO of Mercedes-Benz India, Mr Wilfried Aulbur, at the launch of heavy duty truck Actros 4841K in Kolkata.

Our Bureau

Kolkata, Oct. 9

Mercedes-Benz India plans to launch city-buses and three-axle luxury coaches in the next six to 12 months to boost its bus sales.

Mercedes entered the bus segment in 2008 with two-axle buses and has sold 25 of them.

“We are currently offering only two-axle buses and looking forward to launch city coaches and 3-axle buses very soon,” Mr Wilfried Aulbur, Managing Director and CEO of the company, told newspersons here on Friday.

He was in the city in connection with the launch of New Actros 4841K truck in Kolkata.

Growing demand

City bus segment – characterised by low or semi-low floor AC and non-AC buses – is currently witnessing a surge in demand due to Rs 35,000 crore of Central assistance through Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Several other urban transport agencies such as Delhi Metro Rail Corp (DMRC) too are planning major procurement of these buses for greater operational efficiency of the city-based mass rapid transport systems.

Limited market

Luxury buses suited for inter-State or long distance journeys have a limited market in India with annual sales ranging approximately between 500 and 600 buses shared by eight players. Volvo is a major player in this segment.

Though not comparable to the growth potential of city buses, this segment too is expecting increase in size as more and more State transport agencies are looking forward to modernise their fleet.

According to industry sources, the State transport agency of Haryana recently invited tenders for procuring 100 such buses. Five companies have participated in the bidding process. The bids will open on October 14.

Meanwhile, Mercedes expects its truck sales for the fiscal to remain in the same level as last year. “Our trucks are largely used in the mining sector and this sector is least impacted by the economic downturn,” Mr Aulbur said.

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‘India still a high growth market’

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