Aggressive discounting by truck-makers is just a “reflex” reaction to the industry slump and solves nothing, cautions new entrant Daimler.

Referring to the huge discounts offered by competition in the last five months, Marc Llistosella, CEO and Managing Director, Daimler India Commercial Vehicles, said: “This affects the resale value of trucks and fleet owners will endure asset losses. Customers will get too used to discounts. This also affects the established brand value.”

Truck makers have to look at real solutions – new products, new technologies at affordable costs, service orientation, driver education, maintenance contracts and tailored insurance, said Llistosella, addressing a conference on the commercial vehicle industry.

Daimler will take it “step-by-step, slowly but surely,” keeping in mind the long haul, said Llistosella.

The long term promises better prospects for India and China, said Philippe Divry, President, Volvo India.

“India will soon catch up with global trends by modernising its trucks.”

India also has great potential as an export hub.

“The Volvo group is working on plans to export the Eicher brand of trucks from India. There is a need in certain export markets for trucks with Indian specifications,” said Divry.

Kapil Arora, Partner, Advisory Services, Ernst & Young, said the growth in light commercial vehicles will make up for the sharp decline in medium and heavy commercial vehicles.

According to a report by Ernst & Young on ‘Mega trends shaping the Indian commercial vehicle industry’, original equipment manufacturers must look at increased local sourcing of parts, diversifying to related sectors such as railways and defence, and focusing on after-sales services.

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