Wednesday, April 18th, Daimler entered India’s truck market, promising to offer reliable and efficient vehicles in a bet worth $850 million that other carmakers have struggled to crack.
Daimler bets on its high-quality and technologically superior BharatBenz commercial vehicles in India and plans to win a piece of the world’s fastest-growing truck and bus market.
“The initial purchase price (of such trucks) may be a single-digit percent higher than others, but BharatBenz products have a total ownership cost that is value for money,” said Andreas Renschler, Daimler’s trucks head.
He also declared that the trucks will be 10% more fuel efficient compared to the Indian rivals. The company recently the new state-of-the-art production plant in Oragadam-Chennai, with a total investment of over €700 million. This plant will produce the versatile BharatBenz product range for the Indian volume market, with an initial capacity of 36,000 units annually, able to increase up to 70,000 units.
BharatBenz trucks are robust and reliable vehicles for the modern domestic segment, accounting for 4% of all trucks in India. The company hopes to reach 80% until 2014. Over the past 6 years commercial vehicle sales in India have more than doubled to about 800,000 units annually, as construction booms and infrastructure development increases in Asia’s third-largest economy.