Open to contract manufacturing for others at Chennai: Daimler
Press Trust of India / Chennai Oct 06, 2010, 14:59 IST
Daimler India Commercial Vehicles today said it will evaluate possibilities of tying up with other global group companies for contract manufacturing at its upcoming facility near Chennai.
Daimler India Commercial Vehicles (DICV), a wholly-owned subsidiary of the world's largest truck maker Daimler, is investing Rs 4,400 crore for a new facility at Oragadam in Tamil Nadu.
"All those possibilities when we come to it, we will look at it," DICV Vice President (Marketing, Sales & After Sales) V R V Sriprasad told PTI, when asked if DICV could enter into contract manufacturing.
He said if there are opportunities, in terms of addressing foreign markets or providing solutions to other Daimler group companies by possibly doing contract manufacturing, the company will consider it.
"The company's focus, however, remains to become a significant player in the Indian commercial vehicle market," Sriprasad added.
When asked if DICV has spoken to any other Daimler group firm for contract manufacturing, he said: "As I said, these are things continuously going on at a higher strategic level. So these are possibilities that could come up."
The 400-acre upcoming facility at Oragadam will have an installed capacity to produce 36,000 units per annum.
DICV has planned to introduce a range of trucks in 6-49 tonnes category under a completely new brand for its proposed entry into India's commercial vehicle market in 2012.
Globally, Daimler's truck brands include Mercedes-Benz, Freightliner, Fuso, Western Star, and Detroit Diesel.
The German company will roll out the vehicles from 15 platforms, coming from its group firm Mercedes and Mitsubishi Fuso's stable. Daimler AG holds 85 per cent stake in Japanese auto giant Mitsubishi Fuso Truck and Bus Corporation.
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