German auto major Daimler today said it has consolidated marketing of its truck business in India under wholly-owned subsidiary Daimler India Commercial Vehicle (DICV).
Following the move, the Indian subsidiary will be responsible for marketing and distribution of Mercedes-Benz's 'Actros' range of premium trucks besides its own 'Daimler' products that are scheduled to be launched in 2012.
"Daimler today announced the consolidation of their truck business for India with DICV, located at Chennai. DICV has assumed responsibility of sales and marketing for all Mercedes-Benz trucks with immediate effect," the company said in a statement.
Mercedes-Benz sells Actros range of trucks in India. The company has an assembly line for trucks in its facility in Pune. Actros was introduced in 2006 and over 800 tippers has been sold so far in the country.
"We are extremely happy to have Mercedes-Benz trucks in our portfolio. With focus on the entire Indian truck market, DICV will consolidate the Daimler truck business in India and will offer the total product portfolio of Daimler Trucks to the customers for their individual needs," DICV Managing Director and CEO Marc Llistosella said.
However, the vehicles will continue to be produced from Mercedes-Benz's Pune facility and Daimler will source it from there.
DICV is currently investing Rs 4,400 crore over the next five years to set up a 400-acre commercial vehicle facility in Chennai with an initial capacity of 36,000 units, which will be scaled up to 72,000 units finally.
The company had announced to launch its trucks from the facility by mid-2012. It will produce a range of trucks between 6 tonnes and 49 tonnes category with a targeted localisation of components of 85 per cent.
In 2008, Daimler had planned to set up the plant with the Hero Group through a JV, but it did not materialise as the Indian partner pulled out of the venture last year.
Daimler had last year planned to introduce lightweight trucks from Mitsubishi Fuso stable in the Indian market by 2010. Recently it exited Tata Motors by selling the residual 5.34 per cent stake in the Indian firm for about 300 million euros.
Apart from the Chennai plant, Daimler has its CV facilities in Germany, the US, Japan, Brazil and Turkey.
