The Hindu Business Line : DaimlerChrysler eyes Indian bus market

Boom beckons
The country's commercial vehicles business has grown exponentially over the last 2-3 years.
Global players, including Scania, MAN and Volvo, and domestic players such as Tata Motors and Ashok Leyland are stepping on the gas to make the most of the boom.

Pune , Nov. 3

The country's booming bus market is attracting yet another global heavyweight to try its luck on Indian roads, with luxury carmaker DaimlerChrysler India kicking off a market feasibility study for its range of buses.

With inter-city and intra-city travel now on the rise and competitors such as Volvo making significant inroads into the domestic market with luxury buses, DCIL is seriously considering an entry with its range of products, possibly by end 2007, sources said.

The company, which launched its premium Mercedes-Benz Actros truck in the market in June this year, is expected to complete the study by the second quarter of 2007, Mr Suhas Kadlaskar, Director, Corporate Affairs and Finance, told Business Line, when contacted.

Market sources, however, insist that the company has finalised its roadmap for its operations in India and say that the commercial vehicle segment will play a key part of business growth in the years to come.

Scouting for land

What lends credence to the market intelligence is the fact that the company is now scouting for land near Pune to set up a new manufacturing facility in place of the existing one, which manufactures cars. Sources said that plans are being firmed up to consolidate the company's operations in India and also use the new plant to accelerate its ambitions in the commercial vehicles segment.

"Any decision on the bus project will be taken only after the feasibility report is available and it is premature to talk about models at this point," Mr Kadlaskar said.

Market sources, however, indicate that the company is already in talks with several chassis builders for partnerships to take the bus project ahead. The feasibility study, which started a couple of months ago, is expected to indicate potential business out of India, the product segment to explore, and price points.

The country's commercial vehicles business has grown exponentially over the last 2-3 years and a host of global players, including Scania, MAN and Volvo, and domestic players such as Tata Motors and Ashok Leyland are stepping on the gas to make the most of the boom. DaimlerChrysler AG on Monday told a section of the media in Germany that it is in talks with several Indian truck makers to explore the possibility of tie-ups to build vehicles under a local brand, with technology from DCIL.

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