German auto major Mercedes-Benz on Monday entered the bus segment in the country with the launch of its Mercedes-Benz intercity luxury coach.

"Our presence in the commercial vehicles segment now widens with the introduction of Mercedes-Benz buses. The coaches stand for the latest and best technology, design, comfort, reliability and performance," Mercedes-Benz India Managing Director and CEO Wilfried Aulbur told reporters at its Pimpri plant.

The luxury bus segment would grow rapidly in the country and the company hopes to have a good presence in the segment, he said.

"We are confident of capturing a significant market share in this segment in the country," he said.

However, he said, the company would not like to comment on a sales target for the bus.

The company has tied-up with  Jalandhar-based Sutlej Motors for building the bus bodies, while assembly would be done at its Pimpri plant and later at Chakan.

"Currently, we would be procuring the auto components of the buses from others parts of the world but as and when the volume increases we may localise the components, Aulbur said.