DaimlerChrysler India Limited (DCIL), manufacturer of luxury Mercedes-Benz cars, would roll out premium buses in the country in the next calendar year.

Talking to reporters on the occasion of launch of CL-class Mercedes Benz in the city, Wilfried Aulbur said, "The chassis components of the bus would be imported from Germany, and the body would be built by Sutlej Motors Limited, a Jalandhar-based company as per specifications."

The buses would be of premium quality to take on competition from other foreign players operating in the country in the luxury bus segment, Aulbur added.

The German company expects the demand for high-end buses to grow with the improved road network in the country and increasing need for efficient public transport systems.

DCIL has announced that it would resume production of passenger cars at its new plant at Chakan near Pune by the beginning of 2009.

The Chakan plant, spread over an area of about 100 acres, would manufacture 5000 units of passenger cars per annum. The construction of the new plant would begin this month and it would entail an investment of 50 million euro.

The new plant would also be used in the manufacture of commercial vehicles like the company's Actros brand of heavy trucks, which is used for mining operations. Initially, these trucks would be manufactured at DCIL's rented facility at Chikhali and then at the new facility at Chakan, Aulbur said.

Aulbur refused to mention the exact figure but said that a few hundred units would be manufactured, with the production slated to resume by the beginning of 2008.  He hinted that India has the potential to become a major hub for sourcing of auto components.

"Currently, 30-50 Indian companies are supplying auto components to us but we are planning to expand our supplier base. Bharat Forge [Get Quote] and Infosys [Get Quote] are two of our largest suppliers", Aulbur said.

DCIL has a 50-60 per cent share in the premium car market in India. The market size of the luxury cars in the country ranges from 6,000-7,000 units per year.