Clear ‘political direction’, key for commercial vehicle biz revival

The commercial vehicle industry will pick up “if a clear political direction” is available following the general elections, according to Marc Llistosella, Managing Director and CEO, Daimler India Commercial Vehicles.

The current year will be a year of consolidation with the second half of 2014 a key indicator of the trends to come.

After a dismal 2013 for the industry, when overall sales hit an unprecedented low, the sentiment is beginning to change. But clarity in policy direction will help the upswing. The “next two years will be a game changer for the industry” following the year of consolidation. Daimler India is well positioned with a modern line of trucks and buses to fully exploit the emerging opportunity, he said.

With an offering of more than a dozen models of trucks ranging from nine to 49 tonnes and buses, Daimler India is set to cater to diverse market segments.

It will increase localisation of its products to 95 per cent from 85 per cent to bring down costs and export trucks and buses to take advantage of the favourable foreign exchange rates. Its component suppliers, who have qualified to cater to Daimler globally, will see higher volumes of business and this will lower costs of components for Daimler India, he said.

In an interaction with media persons, Llistosella said Daimler India has sold over 10,000 trucks over the last 18 months it has been in business, a significant achievement for a new entrant.

This puts it in the fourth position in the business with a 5 per cent market share. In March 2014, it sold over a 1,000 units.

The German truck manufacturer has invested over ₹4,500 crore in the 400-acre factory at Oragadam near Chennai.