Mumbai: DaimlerChrysler, maker of the Mercedes-Benz and the world''s biggest commercial vehicle manufacturer has, unveiled plans to launch Mercedes-Benz buses in India by early 2008.

The German auto giant is reportedly looking at collaborating with Sutlej Motors, Punjab-based bus body maker to bodies built on the Mercedes-Benz chassis manufactured by DaimlerChrysler India.

The venture is said to encompass the development, production, marketing, sales and after sales services for rear-engine luxury coaches. DaimlerChrysler will handle the sales and after-sales of these coaches.

The premium end of the bus market in the country is still in its nascent stage, with market leader Volvo selling under 600 units annually. However, rising per capita incomes and a better road and highway network have fuelled demand for luxury highway transport, and the segment is set to heat up soon.

Consumers have already started to demand more comfort and convenience from bus travel, and the pressure is on the manufacturer to provide products with higher safety and environmental standards.

Sutlej Motors is a manufacturer of coaches, buses and application vehicles, manufacturing luxury, inter-urban, long-distance, and modern low-floor city buses. The company also makes low-floor buses for use at airports, along with mini buses.

DaimlerChrysler''s green-field unit is scheduled to be ready around 2009. Industry sources indicate that the initial roll out of these buses could well happen out of Sutlej''s manufacturing unit, citing that Volvo has a similar tie-up with Jaico to manufacture 1,000 bus bodies, and Tata Motors has an alliance with Brazilian Marco Polo.