 "Daimler's India subsidiary to break even by 2016")
With target in mind, the company is stepping up localisation to improve cost-competitiveness, raise exports and improve its share in all markets it has presence, Llistosella added.
“We came with the approach of 85 per cent localisation. We have to increase localisation from 85 to 95 per cent. By that, we will be more cost-competitive. The more cost-competitive you are, the less volume-driven you are.”
According to Llistosella, the first half of calendar year 2014 will be tough as the year will be of consolidation. He, however, added that 2015 and 2016 would be game-changing years and whoever is present and ready for the same would emerge victorious.
The company also plans to bring in earth-moving equipment in the country, he added. While the firm’s net worth has eroded substantially due to the investments made in the country, the amortisation of this investment will happen in three-to-four years from 2016, after the unit breaks even.
In 2013, the company produced a total of 6,900 units from the facility in Oragadam, of which 6,500 units were sold in domestic market, while the rest was exported.
The company has crossed sale of 10,000 trucks since its market launch and has marked a 5.3% market share in the addressable market above 9 tonne segment, during the first quarter of 2014. The company has sold 2203 units of Bharat Benz trucks during January to March, 2014, as compared to 1316 units during the same period of previous year, an increase of 67.4%. It has sold 1,000 units in March, 2014 alone. The company said that the market share increased for it while the overall truck market above 9 tonne decreased by 22% during the quarter.
The company has so far invested over Rs 4,500 crore and it would continue to invest in the market, since it is a hub for its operations, he added.