Bloomberg reported that Daimler AG, the world largest truckmaker will begin producing Mercedes Benz Sprinter vans at a factory owned by billionaire Mr Oleg Deripaska OAO GAZ expanding its commercial-vehicle presence in Russia.

Germany based company said Daimler will invest more than EUR 100 million in manufacturing the delivery van at GAZ plant in Nizhny Novgorod, the Stuttgart. Output may total about 25,000 units a year.

Mr Dieter Zetsche Daimler Chief Executive Officer said in the statement that “The Russian market for commercial vehicles is offering major growth prospects.”

According to the documents distributed to reporters at GAZ’s plant Daimler which also makes Mercedes-Benz luxury cars is expanding in emerging markets to take advantage of growing demand for commercial vehicles. Daimler expects the Russian market to expand to 275,000 light commercial vehicles a year by 2020 from 177,000 now.

Daimler also owns an 11% stake in Russian truck producer KamAZ. The two companies which already operate ventures to assemble Fuso Canter and Mercedes Actros vehicles in Russia, last week signed a preliminary agreement to jointly produce truck axles.

(Sourced from Bloomberg)