Daimler Builds Electric Truck Assembly Plant In Brazil, As Demand Soars

JAKARTA - German manufacturer DaimlerTruckHolding will start assembling its first Mercedes-Benz electric bus in Brazil between November and December. According to a company executive, this is done as demand growth in Latin America's largest economy continues to increase.

"Daimler sees demand for electric buses in Brazil to reach 3,000 vehicles by 2024," said Bus Sales & Marketing Director Walter Barbosa at a press conference.

The Mercedes-Benz brand is expected to join forces with China-based BYD Co Ltd and several local importers in the Brazilian market.

Most of these vehicles will be operated in Sao Paulo as the city is targeted to have 2,600 electric buses by 2024.

“Mercedes-Benz's 84-passenger electric bus is called the EO500U and has a range of 250 kilometers,” said Barbosa. He also noted that 100 million reais (Rp 278 billion) had been invested in the project.

The vehicle will be equipped with two engines, with a recharging time of between 2.5 and 3 hours.

Daimler Truck did not reveal how much the electric bus will cost. But they say that the price is estimated to be 3 to 3.5 times higher than conventional diesel-fueled buses.

Considering the overall bus market in Brazil, the company said total sales have reached 17,000 to 21,000 units this year, depending on how the company manages the ongoing shortage of auto parts.

In 2021, bus sales will reach 14,000 units in Brazil, about the same as the previous year, according to automaker association Anfavea.

"Last year was very difficult, with few customers who could afford and want to buy. This year is completely different, customers want to buy," said Barbosa.