Daimler India shows a profit in 2018

Daimler AG has put on the trucks of the Indian branch labels Fuso DICV and Mercedes-Benz to supply the export

A division of Daimler AG – Daimler India commercial vehicles (DICV), which began retail sales in the country in 2012, reported significant growth of its production. Company represented in the local market of trucks with GVW exceeding 9 tons, in recent years, has expanded its portfolio of products in the medium and heavy segments. Implemented over 5.5 years from start of production, more than 55,000 trucks, and coming in third position in the local market for HCV, the company expects its Indian operations has finally come to break even in 2018 amid rising sales in more than 60% of their authorized dealers, pursuant to their reporting of profitability.

Initially, DICV has invested in 2014, about 44 billion rupees ($691,1 million) in the construction of the plant Oragadam in Chennai and 4,25 billion plant to manufacture buses.

In 2016, although the overall market in India this year has been reduced as a result of regulatory and tax changes, and especially in the first half of the year, Daimler Trucks for the fifth year since the launch of BharatBenz brand significantly increased its sales. From January to November was implemented 15 200 commercial vehicles (+26% compared to the same period in 2016), the market share of this brand increased by 2.3 percentage points to 9%.

The company also decided to enter the bus market in 2014, with models office, school and tourist destination.

Later, the company also entered into the segment of long-distance liners premium with rear engine.

In 2017, it expanded its bus model line the new 16-ton coach bus with front engine.

The President of the division of Mr. Llistosella said, "We are strengthened in the ranking in the good position due to the localization, the quality of the product and our confidence in the suppliers, dealers and other partners that have always made us stronger. Who would believe that the quality of local production will be enough to progress quickly and to improve their competitiveness, so that we can put directly on the products of the famous "star Mercedes-Benz" and even to start export". On the question of the real returns made by dealers investment he replied that: "whenever you start to invest in a new place, then start from scratch. I would say that almost 60% of our dealers are now profitable. When we started, nobody believed that local production will ever be allowed to get logos truck brands Fuso or Mercedes-Benz, but we did it. So when everyone says it's not possible, it is always a motivation for me to get up and prove that it is still possible. On the way had to overcome a lot of difficulties, for example, the credit crisis in 2009, then a sharp increase in VAT in 2014, the commissioning of environmental norms BS-IV (the Indian version of Euro 4 – approx.) but we got through it, though a few lingered with access to a profit."

Starting with the update of the medium-duty lineup in 2016 and upgrade heavy series in 2017, the brand BharatBenz has updated its entire product portfolio within a short period of time. Trucks and buses, BharatBenz are sold and serviced through all India network of more than 130 dealers, including in the cities of regional and district significance.

The company has also ramped up production with advanced level of localization and released a medium-duty truck meets the Euro-5.

India as a regional export hub

Besides that, India is a key regional market, it was an important export center for DICV. So, 10 thousand cars were exported from the plant to Oragadam in Chennai, since June 2013. For 2016, the exports from India has doubled again to more than 4000 units.

Trucks Fuso and Mercedes-Benz intended for export are produced on the same production line and machines under the brand BharatBenz for the local market. Trucks have already been exported to more than 30 countries in Asia, Middle East, Africa and Latin America.

In 2018, the export will be expanded to 40 countries on three continents, including Bahrain and other markets in Africa and Latin America. All exported cars meet all modern requirements for security, reliability and efficiency and are designed to provide full service varied requirements of clients for different target markets.

Help:

Daimler AG has introduced a new integrated business model in 2013. The business plan assumed that the company will combine the activities of the subsidiaries Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Daimler India Commercial Vehicles (DICV) under the umbrella of Daimler Trucks Asia.

In parallel with the business plan in Chennai was shown a new brand Fuso trucks, along with cars, local sub-brand BharatBenz, which began to produce at the existing plant at the DICV Chennai. The main production office MFTBC is currently based in the Japanese city of Kawasaki.

The plant in Chennai is the production of five models of Fuso trucks, including the model medium-duty trucks from 9 to 16 tons and super-heavy models with capacity from 25 to 49 tons. Trucks of the Fuso brand, produced in India were exported to the markets of Asia and Africa. Combining the two companies, Daimler AG is expected to reach the level of sales in the Asian region of 0.5 million trucks in 2015 and 0.7 million by 2020.

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