Daimler India aims to beat record as commercial vehicle sales rev up

Company will expand its dealer network, launch new models and it is working on alternative fuel options: CEO.

Daimler Trucks' India subsidiary this calendar year aims to beat peak sales of 2018 as the commercial vehicle (CV) market recovers after a challenging three years, said a top company executive.

The launch of new models in the heavy-duty segment and aggressive expansion would fuel growth, said Satyakam Arya, managing director and CEO at Daimler India Commercial Vehicles (DICV) told 'Business Standard'. “The CV market has a very strong recovery cycle ahead after three very challenging years. We will cross the 2018 number, which was the peak. Our aspiration is to go beyond that even if the market doesn’t,” said Arya.

The Indian arm of the German truck maker saw its sales peak to 22,000 units in 2018, and Arya hopes to surpass it on strong demand cues from the e-commerce firms, construction, and mining and long haulage goods carrier segment. Domestic sales at the manufacturer of Bharat Benz branded trucks and buses jumped 48 per cent to 14222 units in the calendar year 2022, the year completed a decade in India.

CV sales in India rose to 716,566 units in the year that ended in March 2022 from 568559 units in the year ago period, according to Society of Indian Automobile Manufacturers (Siam) On back of a pick-up across all the segments and pent up demand, most CV makers are bracing for an up-cycle and hoping the industry to surpass the volumes of FY18 when the total industry volumes were close to 856,916 units.

DICV, which entered the CV market as a challenger to Tata Motors and Ashok Leyland a decade back, is charting its next phase of growth, said Arya.

While growth in dealers and sales will be central to the overall strategy as it enters the second decade of operations in India, digitalisation will be second phase. It’s the process of converting itself into a paperless company by end of next year. This will manifest itself in all areas of functions—from shop floor and customer interface to virtual reality.

The company plans to ramp up its sales network from 275 to 330 -350 by the end of next calendar year.  Meanwhile, plans are afoot to plug the “white spaces” in its medium and heavy commercial vehicle portfolio with new products. The third largest heavy duty truck manufacturer by sales that operates 10 to 55 tonne segment is working on host of alternative propulsion technologies including liquefied natural gas, electric, compressed natural gas and hydrogen but is not rushing to launch an electric truck or bus any time soon. It will also stay clear of government tenders on electric buses where rival Tata Motors, Ashok Leyland and others have been aggressive.

“We have enough to do in the segments where we have a presence. As a company, we are always positioned on technology and TCO (total cost of ownership). When it comes to government buying the topmost criteria is price which doesn’t fit our criteria,” he said.

Commenting on whether the company is looking to launch CNG options in the medium duty segment, he said the company “won’t take short term decisions. We have something coming and will launch it. Better than what is available in the market.”