Daimler eyes mining sector to sell trucks

Hopes to sell 200 trucks in the first year.

German passenger and commercial vehicle major DaimlerChrysler (DC) has targeted the mining sector in India for selling its Actros range of trucks.

The company's Indian subsidiary, DaimlerChrysler India (DC India) has currently initiated custom drives of its trucks across the country's mining centres in Jharkhand, Bihar, Orissa, Madhya Pradesh and Karnataka.

DC India will initially import trucks in the form of completely built units (CBUs). The company hopes to sell 200 trucks, in the first year, said industry sources. Indian truck market in value terms is estimated to be around $3 billion (Rs 13,500 crore), which is currently dominated by Tata Motors.

The Indian outfit of DC is at present in the process of identifying dealers for Actros trucks in the country. The company will sell trucks on its own until an active dealership network is established.

After identifying the right dealers, DC will take the initial chain of dealers to Germany for training.

"Actros' tipper and dumper trucks (30-50 tonne) will focus on the mining sector. Our trucks will be launched during the rains, best time to check their operational efficiency on Indian roads. Unless Indian road conditions become better, we do not see a pan-sector presence for our trucks. We do not intend to manufacture or assemble trucks unless the market matures to a certain level," said senior DaimlerChrysler India officials.

DC's decision assumes significance since its German arch rival MAN has plans to make India a manufacturing base for local market and exports.

MAN has tied up with its local partner Force Motors to set up a facility for manufacturing trucks at Pithampur in Madhya Pradesh. MAN-Force's trucks will target all sectors including construction, transportation and mining to meet their loading requirements.

MAN-Force facility at Pithampur will be set up at an initial investment of Rs 700 crore. The plant will have a capacity to make 24,000 trucks. By 2009, the company hopes to export 50 per cent of its production to Asian and African markets.

Volvo, which had started its operations six years ago is keen on making its assembly unit near Bangalore a hub for exports to South and South East Asia.

In 2005, Volvo sold 600 trucks as against 350 in 2004.