Daimler India to build new production line for export markets this year

It exported 4,000 units from India on top of 13,100 trucks it sold in domestic market last year

Daimler India, a subsidiary of German multinational automotive major Daimler AG, is adding a new production line later this year to produce 6.5 tonne-8.6 tonne trucks for the export markets.

Daimler India managing director and CEO Erich Nesselhauf on Tuesday said the company would start shipping out the products from the new production line in the last quarter of the current calendar year, particularly to the Middle East.

The company had exported 4,000 units from India on top of 13,100 trucks it had sold in the domestic market last year.

In the next three years the ratio of exports and domestic sales of Daimler India was likely to touch 50:50 from the present 30:70 level even as the domestic sales are expected to see a double-digit growth starting this year, according to Erich Nesselhauf.

Daimler would also start exporting its India made trucks to ten more countries taking the total number of export destinations to 40 this year. It wants to make India its export hub for the entire Southern hemisphere.

Talking about the government's Make In India drive, Nesselhauf said they had already proven India's manufacturing capability by exporting 40 million automotive spare parts produced by Indian vendors across the world in the last three and half years.

Nesselhauf expects a significant increase in Indian sales growth in the current calendar year despite a subdued performance in January-March period owing to the impact of demonetisation, from little over 7 percent growth it had seen in 2016. "The launch of entire range of new products comes alongside the achievement of 50,000 cumulative sales figure in India in the past five years. It would not take that much time to reach the next 50,000 figure," he said.

Customers' growing inclination towards global quality standards and the BS IV technology are expected to be the big drivers for BharatBenz models in India, according to him.

Daimler India CEO said the company's investments in India had already crossed more than Rs 5,000 crore.