Daimler to increase capacity of Chennai Unit to 36,000 units in 2014

Indian subsidiary of the auto giant Mercedes ,DICV (Daimler India Commercial Vehicle) is planning to expand its Chennai plant capacity to 36,000 units in the year 2014 which is the next phase of its expansion plans in India. In the last fiscal year, Indian commercial vehicle sector registered a scanty growth of 3 % but Daimler India is planning to push sales of its 9 to 49 tonne trucks in India by banking on infrastructure and consumer durables. Sreeram Venkateswaran, assistant vice president of marketing and sales of Daimler India said that the company is expecting to capture the 20 % market of the Indian Commercial Vehicles market by 2020.

Sreeram added that Daimler will be launching its commercial vehicle in September and is planning to sell out around 2500 units in 2012 itself. Daimler will be competing with big names in the commercial Indian vehicle sector like Tata Motors, Ashok Leyland, Eicher Motors, etc. The Daimler trucks will be more durable by their functionality, comfort and safety measures incorporated in the trucks which will increase the life of the truck and decrease the burden of the owners. The traditional trucks in India have to replace their parts once in four years, whereas Daimler trucks will be much more durable and will be available at a low maintenance cost. The DICV expects the Chennai plant to fully utilize its capacity by 2014 as the company has invested Rs. 4,400 crore in India. As per the planning’s of Daimler India 55 % of the current 36,000 units capacity will be utilized till 2013 and later on the next phase of capacity expansion will be started in the year 2014.