Global auto major Mercedes-Benz said it will set up a dedicated assembly line at the state-of-the-art plant in Chakan, Pune, to produce high-end city buses to compete against its global rivals Volvo and Indian majors like Tata Motors and Ashok Leyland.

Mercedes-Benz has already convinced its global partner KYC to set up a body building plant within the factory premises. The idea is simple – manufacture it locally and price it attractively. Sources say the company is infact looking at localising the engine as well to price the product more competitively.

Mercedes-Benz will conduct product clinics and fine-tune the buses to the specific needs of Indian city bus operators and has already imported a low floor and a semi-low floor city bus for the purpose, a company release stated.

“I am 100 per cent convinced that this 500-600 units per annum market will continue to grow by 20 per cent year on year and we think with our products, process, people, we will be able to offer a significant value to the customers,” siad Wilfried Aulbur, MD of Mercedes Benz India.

Source: http://beta.profit.ndtv.com/news/show/mercedes-benz-to-manufacture-low-floor-busses-in-india-73393