Daimler to expand Chennai unit capacity in 2014

Daimler India Commercial Vehicles will commence the next phase of capacity expansion of 36,000 units in its Chennai plant in 2014.

Daimler India said that despite a meager 3% growth of the Indian commercial vehicle market last year, DICV is banking on infrastructure, consumer durables and automobiles sector to push sales of its 9 to 49 tonne trucks. DICV expects to grab a 20% market share in the Indian commercial vehicles market by 2020, stated Sreeram Venkateswaran, assistant VP for marketing and sales.

The commercial vehicles from the Daimler stable will be launched in September 2012. Daimler India will sell 2500 units in 2012 calendar, he added. Daimler will play in the arena that has players like Tata Motors, Ashok Leyland, Eicher Motors Ltd.

Daimler said that it will try to increase the life of the fleet and hence, minimise the burden on truck owners through its range that is high on functionality, comfort and safety. He added that "Big fleet owners in India are known to replace part of their fleet once in four years. DICV range would be less maintenance and hence, not burdensome for truck owners."

"By 2013, we would use 55% of our current 36,000 capacity and once the plant runs full steam, the second phase of capacity expansion would begin," Venkateswaran said.