Stuttgart/Germany/Chennai/India, April 18, 2012
Daimler Opens New Production Plant in
Chennai for Indian BharatBenz Trucks
Daimler India Commercial Vehicles (DICV) opens its state-of-the-art production plant for BharatBenz trucks encompassing about 160-hectares
Total investment of DICV is over €700 million, including manufacturing plant as well as research and development
Initial production capacity of 36,000 units per year,
possible to be ramped up to more than 70,000 units per year
Start of production of BharatBenz heavy-duty trucks
already in the 3rd quarter of 2012
The new production plant of Daimler India Commercial Vehicles Pvt. Ltd. in Oragadam-Chennai has been completed in a record time of about 24 months. The around 160-hectare manufacturing site encompasses an integrated research and development center as well as a state-of-the-art test track.
Following its construction in a record time of about 24 months, the new state-of-the-art production plant of the wholly owned Daimler subsidiary, Daimler India Commercial Vehicles Pvt. Ltd., has been completed in Oragadam-Chennai. In presence of members of the Daimler AG board of management and
J Jayalalithaa, Chief Minister of the state Tamil Nadu in South India, DICV inaugurated the around 160-hectare manufacturing site along with the integrated research and development center and the state-of-the-art test track at a festive ceremony held today.
The plant is one of only three Daimler truck plants worldwide to combine truck assembly and components production at one location.
The total investment of DICV is 44 billion Indian rupees (over €700 million) including the manufacturing facility for BharatBenz brand trucks as well as research and development. The start of production of the BharatBenz heavy-duty trucks are scheduled already for the 3rd quarter of 2012.
The facility in Oragadam-Chennai will produce the versatile BharatBenz product range for the Indian volume market. While some BharatBenz truck models are based on the Mercedes-Benz Axor platform, others are built on the Fuso Canter series. The plant in Chennai has an initial production capacity of 36,000 units per year and is designed to allow an increase up to more than 70,000 commercial vehicles per year.
Cooperation with local suppliers and the creation of an extensive dealership network
BharatBenz trucks are robust and reliable vehicles for the modern domestic segment, which illustrates the consistently increasing demands of the Indian customers. This segment currently accounts for four percent of all trucks in India, but this figure is expected to rise to almost 80 percent by 2020. With a product portfolio of 17 BharatBenz commercial vehicles by 2014, DICV is preparing for the promising Indian truck market, which has developed into the world’s third largest market with a volume of more than 330,000 vehicles in the weight classes of 5 to 49 tonnes in 2011.
Daimler’s Indian commercial vehicle subsidiary cooperates with over 450 suppliers who were selected after stringent quality and due diligence tests. In cooperation with local car and commercial vehicle dealers, DICV has built up a nationwide retail network that will encompass around 70 locations by the end of 2012. The retail network will be expanded to more than 100 dealerships by 2014.
The Daimler subsidiary Daimler Financial Services will offer financing and insurance products for dealers and customers in support of BharatBenz vehicle sales.
Daimler India Commercial Vehicles is a wholly owned subsidiary of Daimler AG, which is based in Stuttgart, Germany. Starting this year, DICV will produce commercial vehicles for the Indian volume market. The products will be customized to serve all major customer segments, ranging from owner-operators to large fleet operators. The company, which has more than1,400 employees, also handles marketing, sales, and after sales of Mercedes-Benz Actros trucks in India.