1 Month agoThe company has an installed capacity of 36,000 units in India.
Overview of the Company
Daimler India Commercial Vehicles (DICV) produces medium to heavy duty trucks and buses for developing markets. As a full-fledged commercial vehicle manufacturer, the company serves the domestic market with a range of ultra-modern trucks under the brand BharatBenz. The trucks come in a range of categories - from 9 to 49 tons. Besides, the buses and luxury coaches are manufactured under the brands BharatBenz and Mercedes-Benz in the 9 ton, 16 ton & 16 ton and above category.
The company has an installed capacity of 36,000 units in India. Under the aegis of Daimler Trucks Asia, DICV and Mitsubishi Trucks and Bus Corporation (MFTBC) optimise research activities, product development and sourcing. The DICV-built FUSO trucks produced in Oragadam near Chennai are exported to markets in South East Asia, Africa, and Latin America.
Significance of Make in India
Erich Nesselhauf, Managing Director & CEO of DICV said that their company has plans to expand their footprint in India and further widen its range of commercial vehicles. “We have already invested USD 676 million. This amount will be used to expand our production portfolio in India as well as our existing plant in Oragadam. In addition to this, we have plans to widen our bus production portfolio and the heavy-duty line. Make in India has been our target from the very beginning. We export our trucks, our parts, our services, our systems. We have a lot of qualified young talent. We also have state-of-the-art infrastructure to support our production. Moreover, the government has helped us to acquire land and that’s how we have built these automotive clusters."
India’s young and talented workforce, as well as the abundance of natural resources available within the country, gives it a distinct advantage in manufacturing over its competitors. Also the government has taken a slew of measures to radically liberalise the Foreign Direct Investment (FDI) policy in key sectors. The automotive sector permits 100% FDI under the automatic route.
Vision for the future
The company has plans to launch eight new truck models based on the premium Thunderbolt platform over the next two years. With this move, Daimler aims to export this new range to as many as 40 countries.
Daimler has a network of over 80 service centres and aims to increase it by 50%, seeking to penetrate deeper into the Indian market.
India’s national and demographic advantage coupled with its business friendly measures undertaken by government will help to make the country one of the most lucrative destinations to invest.