Nasdaq-listed Truck maker Paccar said on Saturday it is tapping India for component sourcing and developing technology for its global operations, but has no plans now to sell or assemble products in the country.
The work at the technical centre has already begun and the company will hire 200 employees by the end of this year.
The US-based Paccar, which is participating in the 11th Auto Expo here for the first time, has set up a technical centre in Pune in partnership with technology solutions company KPIT Cummins Infosystems Ltd.
"Our focus in India right now is to successfully launch the technical centre in Pune to develop solutions for global requirements and introduce ourselves to the supplier base here," Paccar Inc Managing Director (India Initiative) Donald J Schulte said.
He, however, did not provide details of the quantum of sourcing Paccar is eyeing from India. "We have just started getting into contact with suppliers here...And work at the technical centre has also begun. By the end of this year we will hire 200 employees," Schulte said.
Asked about the company's plan to sell and market its trucks in India or plans for setting up an assembly unit here, he said, "India is a very vibrant and interesting market, but Paccar has no plans for vehicle sales in India at this time."
At the ongoing auto show, Paccar is showcasing its premium DAF CF truck equipped with 180 horsepower engine.
Globally, the company designs, manufactures and markets light, medium and heavy duty trucks under Kenworth, Peterbilt and DAF brands.
Paccar operates nine truck manufacturing facilities, two engine manufacturing units and 14 distribution centres globally. In 2011, the company had posted revenues of $11.5 billion and net income of $715 million.
Commenting on the growth of the truck market, he said, "The global market for over six tonne trucks is estimated to be 2.9 million at present and will touch 3.6 million."
In India, 300,000 trucks were sold in 2011 and the number is expected increase to 3,70,000 units by 2015, according to Schulte.