 "Highway riders")
For years, European auto giants Volvo and Scania had scooped up a significant share of the mining segment of the Indian heavy commercial vehicles market but German auto major Daimler says it is out to change all that. It has set up a large manufacturing complex in Oragadam, about 45 kms away from Chennai where it will manufacture high powered trucks and mid and premium range buses.
The company expects the trucks segment to grow at close to 14 per cent in the coming year and the market to double by 2020. In India the market for medium and heavy vehicles has grown, albeit slowly. Daimler India however is unperturbed. The company says that having invested Rs 4,400 crore in India till date since its inception in 2012, it is bullish on its prospects and is raising its commitment by Rs 425 crore in the new bus facility. It is also going for 90 per cent localisation of its buses and 85 per cent for its trucks which may go up to 90 per cent in certain brands.
What makes it so sure of the market? Eric Nesselhauf, managing director and CEO, Daimler India Commercial Vehicle (DICV) points to two factors: one the market has picked up and will do even more - he believes that just the premium truck segment could amount to around 2,000 units a year. He also claimed that the company has already received orders for 600 vehicles. And the second factor he believes is their new line of products meet an unmet demand. The BharatBenz 3143 (deep mining trucks) will bridge the gap in the industry that currently offers two kinds of vehicles: premium trucks and trucks that are underpowered. The 3143 will be developed on the existing Daimler Heavy Duty Truck Platform with a 4-axle configuration (430 HP and IM 457 Mercedes Benz engine) which makes it, the company claims, the most powerful truck in the market. It will be manufactured at the Oragadam facility.
The truck is capable of operating in challenging terrains, is crafted for Indian usage patterns and can efficiently operate in deep mining conditions. An industry expert noted that today Indian OEMs are not focusing on this segment because the operational conditions are not conducive enough. They are unable to address the challenge related to air filter, fuel filter and service availability. But the margins are getting better, which will make OEMs profitable.
The new buses target inter-city, school and staff and luxury travel. The buses with front-engine will be meant for short distance. The premium segment will be addressed with Mercedes-Benz rear engine buses. The Ireland-based Wrightbus will help with the body building and the platform has already been tested in various countries. The initial capacity of the new plant is 1500 units which can be expanded to 4,000 units subsequently. Mark Nodder, chairman and chief executive officer, Wrights Group Ltd, said that in UK fuel efficiency of Daimler buses is around 10-15 per cent higher than the competition. The company aims to replicate the same in India. The buses would be fuel efficient and are being designed to ensure riding comfort said Marckus Villinger, managing director, Daimler Buses India.
Since 2012, the company has sold 20,000 trucks in India and exported around 2000 products to around 12 countries. The export market will also be a lucrative bet for its trucks made in India.
The company expects the trucks segment to grow at close to 14 per cent in the coming year and the market to double by 2020. In India the market for medium and heavy vehicles has grown, albeit slowly. Daimler India however is unperturbed. The company says that having invested Rs 4,400 crore in India till date since its inception in 2012, it is bullish on its prospects and is raising its commitment by Rs 425 crore in the new bus facility. It is also going for 90 per cent localisation of its buses and 85 per cent for its trucks which may go up to 90 per cent in certain brands.
What makes it so sure of the market? Eric Nesselhauf, managing director and CEO, Daimler India Commercial Vehicle (DICV) points to two factors: one the market has picked up and will do even more - he believes that just the premium truck segment could amount to around 2,000 units a year. He also claimed that the company has already received orders for 600 vehicles. And the second factor he believes is their new line of products meet an unmet demand. The BharatBenz 3143 (deep mining trucks) will bridge the gap in the industry that currently offers two kinds of vehicles: premium trucks and trucks that are underpowered. The 3143 will be developed on the existing Daimler Heavy Duty Truck Platform with a 4-axle configuration (430 HP and IM 457 Mercedes Benz engine) which makes it, the company claims, the most powerful truck in the market. It will be manufactured at the Oragadam facility.
Daimler will soon launch buses for the Indian market
The truck is capable of operating in challenging terrains, is crafted for Indian usage patterns and can efficiently operate in deep mining conditions. An industry expert noted that today Indian OEMs are not focusing on this segment because the operational conditions are not conducive enough. They are unable to address the challenge related to air filter, fuel filter and service availability. But the margins are getting better, which will make OEMs profitable.
The new buses target inter-city, school and staff and luxury travel. The buses with front-engine will be meant for short distance. The premium segment will be addressed with Mercedes-Benz rear engine buses. The Ireland-based Wrightbus will help with the body building and the platform has already been tested in various countries. The initial capacity of the new plant is 1500 units which can be expanded to 4,000 units subsequently. Mark Nodder, chairman and chief executive officer, Wrights Group Ltd, said that in UK fuel efficiency of Daimler buses is around 10-15 per cent higher than the competition. The company aims to replicate the same in India. The buses would be fuel efficient and are being designed to ensure riding comfort said Marckus Villinger, managing director, Daimler Buses India.
Since 2012, the company has sold 20,000 trucks in India and exported around 2000 products to around 12 countries. The export market will also be a lucrative bet for its trucks made in India.
| DRIVING INDIA |
Daimler India has invested Rs 425 crore in a bus manufacturing facility at Oragadam on the outskirts of Chennai. The company is launching premier trucks and a new line of buses for India. Coming soon:
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