Mercedes-Benz Buses integrated with DICV
Daimler India Commercial Vehicles Pvt. Ltd. (DICV), a wholly-owned subsidiary of Daimler AG, has just announced the integration of the Mercedes-Benz Bus Division with itself. The Mercedes-Benz Bus business was until now handled by Mercedes-Benz India Pvt. Ltd., Pune.
Mr. Marc Llistosella, Managing Director & CEO, DICV, 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”.
Mr. Markus Villinger, Head, Daimler Bus Division, India, said: “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. The integration of the Daimler Bus Division with DICV, while creating greater synergies, will also open several business opportunities in future”.
Mr. Eberhard Kern, Managing Director and CEO, Mercedes-Benz India, observed: “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. We will continue to support by assembling Mercedes-Benz buses at our facility in Chakan, Pune.
Mr. V.R.V. Sriprasad, Vice-President, Marketing, Sales & After-sales, DICV, commented: “Mercedes-Benz India had introduced Mercedes-Benz buses in India in 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. Our dealer network is now available in all initial markets and is fast expanding. With this we are confident that we will be able to focus on our bus customers with the most appropriate service”.
Mercedes-Benz India Private Ltd. (MB India), Pune, a 100 per cent wholly-owned subsidiary of Daimler AG, is focused on the manufacture and marketing of Mercedes-Benz passenger cars. Owing to the fact that the Commercial Vehicle Division of Daimler AG was being set up in Chennai, the bus business was initiated through MB India. MB India has sold over 300 buses since 2008 and has successfully raised the expectations of the market with the Mercedes-Benz inter-city luxury coaches. The coach builder is Sutlej.
In line with this integration, marketing, sales & after-sales of Mercedes-Benz buses will now be handled by DICV. Production of these buses will continue at MB India for some more time. The organisation for buses has been transferred to DICV and will now operate from DICV’s manufacturing plant at Oragadam, near Chennai. The Daimler Bus Division at DICV is headed by Mr. Markus Villinger.
With the integration with DICV, Mercedes-Benz buses will now be promoted by utilising the growing network of state-of-the-art dealerships created for its brand BharatBenz. While sale of buses will be carried out directly by DICV, service of vehicles will be carried out by select dealers of BharatBenz.
All BharatBenz dealers have been equipped with the capacity necessary to handle bus business. However, initially only seven dealers along with two others who have been servicing MB buses through MB India will handle service of buses. These dealers have been selected based on the market regions where bus business is currently focused. However, as expansion takes place, the other dealers of the DICV network will be nominated.
Daimler Financial Services (DFS), which is focused on captive finance for Daimler customers, will support the bus business through its tailored financial product, “Mercedes-Benz Financial”. Further tie-ups through the existing relationship between DICV and various other financial institutions will also be explored.