After luxury and sports car segment, Mercedes Benz is gearing up to fight it out in the buses segment as well.

The company said that the city bus segment has huge potential and is expected to grow by 20 per cent and nothing less in the luxury bus area alone. This then will be the right time to enter the market, which is not very much crowded.

On Friday, Managing Director of the company, Wilfried Aulbur said that the potential of the industry is huge and that is what is making it such a lucrative offer. He was talking to the media during the launch of its multi-axle coaches.

He however, refused to answer anything about the kind of investment that Merc is planning to do and the time-frame that it will be looking at for the project.

For entering into the market, Merc will need to compete with the players like Tata Motors, Volvo and Ashok Leyland, who are the big fishes of the market.

Also known as low-floor buses, each of the city buses are sold for as much as Rs. 65 lakhs.