The company had won the global tender floated by DTC, matching world-class specifications and standards, the company said in a statement.
It, however, did not disclose the value of the order.
The 500 DTC buses, to be manufactured at Tata Motors' Lucknow centre and delivered from the second half of 2007,
will be rear engine driven, besides being fitted with automatic transmission and full pneumatic suspension, it said.
This is the single largest order for fully-built low-floor buses received by Tata Motors till date, it added.
The buses are suitable for running on the routes of proposed Rapid Bus Transit System, and are expected to contribute to transforming the city traffic system well in time for the Commonwealth Games, it said.