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German auto major Daimler AG is consolidating its commercial vehicle business in India by integrating the bus business in the country with Daimler India Commercial Vehicles (DICV).
The Mercedes-Benz bus business, which was until now handled by Mercedes-Benz India, Pune is now being integrated with truckmaker DICV, a wholly owned subsidiary of Daimler AG.
Commenting on the development, DICV Managing Director & CEO, Marc Llistosella said: "The alignment of the bus division with DICV is a logical step in integrating the commercial vehicle divisions of Daimler into one cohesive unit. This is in line with our global practice to ensure better synergies in various business verticals."
With this alignment Daimler will be able to expand its presence in India through a dealer network oriented and trained in the operations of commercial vehicles, he added.
Daimler Bus Division India Head Markus Villinger said the integration of the bus division with DICV while creating greater synergies will also open several business opportunities in future.
"As the global leader in buses, Daimler sees India as a market with growing potential. However, the luxury coach segment is still very small in comparison to the total market. We will initially focus on this segment."
Mercedes-Benz India Managing Director and CEO Eberhard Kern said the company will continue to support by assembling the Mercedes-Benz buses at its facility in Chakan, Pune.
"We have nurtured the bus business since its launch in India and are happy that our sister company will take over this business and continue to offer superior products and brand experience to our customers," Kern said.
Mercedes-Benz India, Pune, a wholly-owned subsidiary of Daimler AG is focused on the manufacture and marketing of Mercedes-Benz Passenger Cars.
While DICV was being set-up at Chennai, the bus business was initiated through Mercedes-Benz India, which has sold over 300 buses since 2008.
"As DICV was still in a project phase and focused on the introduction of BharatBenz Trucks, we had to wait for an appropriate time for this integration," DICV Vice-President, Marketing, Sales & After-sales VRV Sriprasad said.
In line with this integration, the marketing, sales and after-sales of Mercedes-Benz Buses will now be handled by DICV. The organisation for buses has been transferred to DICV and will now operate from DICV's manufacturing plant at Oragadam, near Chennai, the company said
Mercedes-Benz buses will now be promoted using dealerships created for its BharatBenz trucks. While the sale of buses will be carried out directly by DICV, service will be carried out by select dealers of BharatBenz, it added.
