Daimler AG to roll out India-specific trucks from Chennai by 2012

Even after disengaging with Hero Motors for the commercial vehicle joint venture, the Indian arm of German commercial vehiclemaker-Daimler AG has categorically stated that it would continue to pursue its plans to make trucks and buses in India on its own.

 

Furthermore Daimler India is also planning to invest €700 million to increase the production capacity of its trucks in its manufacturing plant at the SIPCOT Industrial Park in Oragadam, near 40 km from Chennai (in Tamil Nadu). Of late, it has been learnt from a senior official of its Indian arm (Mercedes-Benz India) that Daimler AG is developing a truck especially for the Indian market that will hit the roads by 2012. At present, Daimler has presence in the Indian passenger car and commercial vehicles segment through Mercedes Benz India. The company rolls out Actros range of mining trucks and buses from its Chakan plant in Maharashtra. 

 

"We (Daimler) are developing a totally new truck for the Indian market and it will be rolled by 2012 from the Chennai facility," Mercedes-Benz India managing director and CEO Wilfried Aulbur told reporters in New Delhi. He said the India-specific truck will be in various categories and will have new branding under Daimler operations.  He added, "Our existing Mercedes range of trucks are premium and hence expensive ones. Therefore, we are creating a new product, and in future there will be Daimler trucks across all spectrums."   

 

Even though the timeline of the proposed investments could not yet be ascertained. Industry sources on condition of anonymity have revealed that the is meant to be commissioned in a 1,000 acre-plot at Chennai at an initial capacity of 70,000 trucks per year and provide direct employment to around 2,000 people.

 

It is to be mentioned that last year, Hero Group and Daimler AG had agreed to form a JV- Daimler Hero Motor Corporation (DHMC) - in which Daimler was supposed to have a 60 per cent stake and the Hero Group the balance. The partners had earlier earmarked an investment outlay of Rs. 4,400 crore for the JV, including setting up a manufacturing plant. Hero Daimler JV was to manufacture light and medium commercial vehicles initially, and heavy duty vehicles then. The light and medium commercial vehicles were to be launched by 2010, while the heavy commercial vehicles were to roll out by 2012. But, more than a couple of months back Hero Group had decided to pull of the venture, citing the unfavourable conditions in the CV industry globally.