News

Daimler Trucks unveils BharatBenz Plant at Chennai

19th April 2012, 12:45 by Munjal Savla

Daimler unveils its new production facility at Chennai, from which BharatBenz Trucks will roll out in the 3rd quarter of 2012. The Chief Minister of Tamil Nadu, Hon'ble Selvi J Jayalalithaa, inaugurated this 400-acre plant. It is noteworthy to mention that Daimler is the largest truck manufacturer in the world (Volvo is no.2).

About the plant and the Indian company:

A total investment of Rs 4,400 crore by Daimler, including the manufacturing plant and research & development costs.
Initial production capacity of 36,000 units per year (24,000 for heavy-duty trucks, the rest for light-duty). Will be eventually ramped up to more than 70,000 units.
This plant is one of only three Daimler facilities worldwide to combine truck assembly & components production at the same location.
With a planned portfolio of 17 BharatBenz commercial vehicles by 2014, Daimler is pushing hard in the Indian truck space that has developed into the world’s 3rd largest. Indian market volume was over 330,000 vehicles in the weight classes of 5 - 49 tonnes last year. Tata Motors plays a dominating role in the commercial vehicle segment, followed by Ashok Leyland.
Work-force is primarily Indian and is 1,400 employees strong.
BharatBenz trucks will have a localization level of 85 percent. Daimler wants to increase this to 90% in 3 years.
450+ suppliers in total, of which 180 are located within a 40 kilometer radius of the plant.

Challenges:

The Indian truck & bus segments are dominated by Tata Motors and Ashok Leyland. Several other foreign manufacturers have unsuccessfully tried to break this monopoly.
Truck owners are wary of foreign brands, as some MNC manufacturers wound up operations, leaving existing owners wanting for spare parts and service.
Daimler trucks will be priced higher than competing products from the Indian manufacturers.
Tata Motors has an unbeatably w-i-d-e service network in India for its trucks. Spare parts are also available in every part of India.
Overloading trucks with extra cargo is a common practice in India. Tata & Ashok Leyland understand this & engineer their trucks accordingly. Can Daimler trucks handle cargo that weighs over the specified payload?
Existing relationships between Indian manufacturers & fleet operators pose a huge barrier to entry.

About Daimler India Commercial Vehicles (DICV):

Daimler India Commercial Vehicles is a wholly owned subsidiary of Daimler AG, which is based in Stuttgart, Germany. Starting this year, DICV will produce commercial vehicles for the Indian market. The products will serve all major customer segments, ranging from owner operators to large fleets. The company also handles the marketing, sales and service of Mercedes-Benz Actros trucks in India.

Service & Network:

70 dealerships in place by end 2012. More than 100 dealerships targeted by 2014.
24/7 roadside assistance service. Daimler promises service within 2 hours "anywhere on the Golden Quadilateral".
Daimler Financial Services will provide finance, insurance and service contracts under the BharatBenz Financial brand.
The insurance schemes will offer cashless facility, zero depreciation claims and full maintenance contracts.

About the Trucks:

The range of trucks includes Light Duty Trucks (LDT) & Heavy Duty Trucks (HDT) in the 9, 12, 25, 31 and 49 tonnes category.

Light Duty Trucks (LDT):

Based on the Fuso Canter platform.
Four-cylinder engine in two variants of 140 HP and 175 HP.
Available as 9-tonne Rigid, as well as 12-tonne (Rigid or Construction).
BharatBenz offers Anti-roll bars for added stability, as well as an optional air-conditioner.

Heavy Duty Trucks (HDT):

Based on the Mercedes-Benz Axor platform.
Six-cylinder engine in two variants; 231 HP and 279 HP.
Available as 25-tonne (Rigid or Construction), 31-tonne (Rigid or Construction) and 49-tonne tractor-trailer.
The rigid truck offers an intra-axle differential lock as standard fitment, and a balancer-type rear suspension that provides greater traction on loose ground. Also unique is the fact that engine driven applications (like Mixers for instance) can be directly powered from the truck engine (no need for a separate engine as is usually the case).