Daimler is the fourth foreigner to set foot in Indian truck domain. Will it help break the low foreign sales jinx?
Trucks are ‘huge’. That’s a no surprise. They mean ‘huge’ business. That’s a no surprise either! And the power punch becomes even more brutal when we talk about an economy like India, which is witnessing a radical improvement in its mass transportation system, with billions of rupees set aside for the same. As proof, industry sales released by SIAM show that in March 2008, 404,930 commercial heavy vehicles were sold in the domestic market – a dazzling 14.17% y-o-y growth rate. And where Volvo, Man and Tetra have already set their firm foot on the Indian soil, there is a fourth giant gearing up for the muscle magic – German truck-maker, Daimler.
The company entered into a 60:40 JV with India’s Hero Group, to manufacture commercial vehicles on April 21, 2008. The total capex will amount to $1.1 billion, with Daimler contributing close to $343 million. There has been an energetic scouting for a plant location in South India, with production forecasted to commence from 2010. Andreas Renschler, Head, Daimler Trucks comments on the occasion, “It is an important milestone for Daimler Trucks and our Asia strategy. In the Hero Group we have found an ideal partner, as the two perfectly complement one another in terms of the experience and expertise...”
Trucks are ‘huge’. That’s a no surprise. They mean ‘huge’ business. That’s a no surprise either! And the power punch becomes even more brutal when we talk about an economy like India, which is witnessing a radical improvement in its mass transportation system, with billions of rupees set aside for the same. As proof, industry sales released by SIAM show that in March 2008, 404,930 commercial heavy vehicles were sold in the domestic market – a dazzling 14.17% y-o-y growth rate. And where Volvo, Man and Tetra have already set their firm foot on the Indian soil, there is a fourth giant gearing up for the muscle magic – German truck-maker, Daimler.
The company entered into a 60:40 JV with India’s Hero Group, to manufacture commercial vehicles on April 21, 2008. The total capex will amount to $1.1 billion, with Daimler contributing close to $343 million. There has been an energetic scouting for a plant location in South India, with production forecasted to commence from 2010. Andreas Renschler, Head, Daimler Trucks comments on the occasion, “It is an important milestone for Daimler Trucks and our Asia strategy. In the Hero Group we have found an ideal partner, as the two perfectly complement one another in terms of the experience and expertise...”
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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