Mumbai: DaimlerChrysler plans to enter into a partnership with Sutlej Motors Ltd to build bus bodies on Mercedes-Benz chassis built by its Indian unit.

The Mercedes-Benz chassis will be made by DaimlerChrysler India while Sutlej Motors will build the body. DaimlerChrysler India will then handle sales and after-sales

The agreement includes development, production, marketing, sales and after sales of luxury rear engine coaches, DaimlerChrysler said in a statement.

The first vehicles from the new venture were expected to roll off the assembly line in the first quarter of 2008, the German car maker said. No financial details were disclosed.

With improved road network in India and increasing need for efficient public transport systems, the demand for high-end buses is expected to grow. The country will require buses that ensure comfort and convenience of the passenger and at the same time provide the highest degree of safety and environmental performance, the statement noted.

Jalandhar, Punjab-based Sutlej Motors is one of India''s leading manufacturers of coaches and buses and application vehicles. Founded in 1935, it today produces luxury coaches, inter-urban buses, long distance buses, modern low floor city buses, low floor airport buses and mini buses.