Wilfried Aulbur, Mercedes-Benz CEO in India said that they expect to start operations at their new plant in Chakan near Pune by February-March of 2009.

"We are planning to invest about €50 million in the Chakan plant," he said. The plant would have a production capacity of 2,500 trucks and buses and 10,000 cars over two shifts per year, where one shift spans eight hours, Aulbur added.

Mercedes-Benz, a division of Daimler had announced in March this year it would relocate its plant to Chakan from Pimpri. Last September, it announced a tie-up with Sutlej Motors under which the latter would build the body for the luxury bus at its Jalandhar plant. Kulwant S Wilkhu, director (business development & strategy}, Sutlej Motors, said the company has invested about Rs 200 crore into the business.

The Intercity Luxury Coach marks the company’s entry into India‘s luxury bus market. Volvo is the current market leader in this market, followed by Tata Motors. Priced at Rs 80 lakh, the bus has a standard seating capacity of 45, which can be modified. Aulbur said the chassis of the bus is imported from the company’s plant in Brazil. Almost 95% of the components for the body are sourced from India, added Wilkhu.

Currently, there are three dealers for the bus at Pune, Mumbai and Bengaluru. "We are open to new dealers and hope to have 10 dealers by 2009," said Aulbur.
Mercedes-Benz offers after-sales service in Mumbai, Pune, Bengaluru, Kolhapur and Hooghly.

"It will focus on the after sales network for the next 2-3 years before launching another product in the luxury coach segment," said Harald Landman, the head of Daimler Buses.

Chakan has also been selected by the state government infrastructure committee for the construction of a four-lane bypass.

Currently vehicles going to Solapur and Hyderabad have to go through Pune city, causing traffic congestion and pollution.

According to the state government’s Public Works Department (PWD), there was a huge demand for the construction of a four-lane bypass. The proposed road will save more than an hour of time. Wadgaon, Talegaon, Shilgrapur, and Chaufula in Pune district will see the bypass passing through them. The proposed 123 kms road will be completed in approximately three years time.

Both these developments will prove to be a huge boost to the popularity of Chakan as an investment destination.