The chasis of the three-axles vehicle will be made by Mercedes Benz while the body will be assembled by its Indian partner Sutlej Motors.
The bus will be powered by a Euro III engine with six cylindres. Without disclosing the sales target for the vehicle, Mercedes-Benz India managing director Wilfried Aulbur said, "The momentum for 2010 semms to be good".
The company launched its 2-axle buses in India in 2008 and has sold 25 units so far. The total market for two and three axle buses in the country is estimated at 800-1,000 units per annum.
Asked about whether the company would introduce its buses with alternative fuels like CNG, he said, "We will take the decision based on the market demands.