New Delhi: Tata Motors has given a no objection certificate to the world''s largest commercial vehicle (CV) player DaimlerChrysler to manufacture CVs in India. With this the German company would be able to roll out Mercedes-Benz branded CVs in India also intensify competition at the top end of the CV and luxury bus market in the country.

DaimlerChrysler India holds 6.64 per cent in Tata Motors and according to government guidelines it required a no objection certificate from the Indian company before it could enter the CV segment as a competitor.

DaimlerChrysler currently imports Mercedes-Benz trucks. But with the new proposal, it would start producing CVs locally. DaimlerChrysler would initially make the vehicles at its manufacturing facility at Pune. Production would later be shifted to its new plant at Chakan, near Pune. DaimlerChrysler has acquired 100 acre at Chakan Industrial Park.

Daimler is also expected to get into the production of luxury coaches and buses. In addition, Daimler would develop bus bodies at its India unit.

Tatas entered into collaboration with Daimler Benz in 1954 for medium CVs. When Daimler started its manufacturing activity for Mercedes-Benz cars in India in 1994, it began as a 51:49 joint venture between Daimler and Tata Motors, then known as Telco.

DaimlerChrysler is the world''s No. 1 CV company with about 15 per cent and 17 per cent global market share of the medium-heavy duty truck and bus segment, respectively. In 2006, it sold over 536,000 trucks and 36,000 buses.