German luxury auto-maker Mercedes Benz would soon introduce intra-city buses in India, a top official of the company said here today.

"We are currently looking at the possibilities of city buses... It will be low floor entry..," Mercedes Benz Managing Director and CEO Wilfried Aulbur told reporters here.

Declining to elaborate, Aulbur said they were conducting feasibility studies on launching 'city buses' on Indian roads for both private operators and state transport undertakings.

"It (buses) would be cheaper, but at this point of time we have not yet finalised...," he said.

On the inter-city passenger bus service introduced last year, he said the company has received an order for 43 buses, including two axle and multi-axle variants. "So far we have got an order for 43 buses and 13 were delivered," he said.

The buses are currently assembled at their Pune plant and the body is built by Jalandhar-based Sutlej Motors.

Aulbur said the Pune plant single shift operations has a capacity of 1,500 units for commercial vehicles, which would be doubled soon. "Very soon we will start the second shift."

On their future outlook, Aulbur said he expects double digit growth this year. "Last year, the bus market was 69,500 units, of which luxury buses contributed 1,000 units. This market is growing rapidly by 15-20 per cent and we expect to be a major player in this particular segment."

Since the company was in the "transition period" last year, the company has sold nine luxury buses in 2009, he said.

The buses introduced today are priced at Rs 74 lakh for the two axle variants and Rs 94 lakh for three axle buses.

On whether the company would utilise truck manufacturer Daimler's facility at Oragadam near Chennai, he said there is an opportunity for them to use it. "We do believe there are opportunities for manufacturing engine and power train (at Chennai facility)," he said.

World's largest truck maker Daimler has a manufacturing facility at Oragadam. The plant would manufacture light, medium and heavy commercial vehicles. It would have a capacity 72,000 units.

Aulbur was upbeat about the car business, hoping for decent growth this year. "Last year we sold 1,142 units including all variants, whereas for this year, till May end we have sold 2018 units, up by 78 per cent."