The company's wholly-owned arm Daimler India Commercial Vehicles (DICV) has been manufacturing trucks under the BharatBenz brand, which is meant for the Indian volume market.
"After today's start of production of buses, the DICV plant is the only Daimler Trucks plant worldwide to produce trucks, buses and engines with three brands -- Mercedes-Benz, BharatBenz and FUSO -- under one roof," DICV said in a statement.
The company has invested Rs 425 crore at the bus plant, which has an initial capacity of 1,500 units per annum and can be further expanded to 4,000 units annually.
"We see enormous potential for growth in the market as the volume of the Indian market for buses weighing over eight tonnes is set to double by the year 2020."
DICV said BharatBenz buses manufactured at the Oragadam plant will be front-engine for short distance travel targeting school, staff and tourist transportation.
"The premium segment will be addressed with Mercedes-Benz rear-engine buses for inter-city transportation. The new plant will manufacture buses with gross vehicle weight of 9, 16 and above 16 tonnes range. The first to roll off the line was a BharatBenz school bus," it added.
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