Daimler's Indian arm expects to break even by 2017

Company says it is bullish about Indian market

German auto major Daimler’s Indian arm Daimler India Commercial Vehicles (DICV) has said that it is expecting to report profit by 2017, as the weak Indian Rupee is helping exports.

“DICV’s truck business in India would likely reach break-even levels by 2017,” said Wolfgang Bernhard, Daimler AG Board member responsible for Daimler Trucks & Buses. He was talking on the sidelines of a foundation stone-laying ceremony for a Rs 425 crore bus manufacturing facility at Oragadam near here last week.

Bernhard said that within 18 months of Daimler India entering the commercial vehicle segment with the Bharat Benz brand, it had raced to the fourth position in the market. As of January 2014, the company sold 7,500 vehicles in India. The company launched its first set of vehicles in September 2012.

“We will fight it through to move up the ladder. It will take time, but we have the patience to move up,” he said, adding that though the industry in India had faced a setback, the company was optimistic about the future. “We don’t believe there is no growth in India. We see huge potential. While many other companies focus on weaknesses and challenges, we will focus on opportunities, mainly the population which will push the demand for mobility,” said Bernhard, while expressing confidence that there would be a revival latest by next year, after the Lok Sabha election.

He added, “There is a sign of recovery. Investments have started picking up and we see that in the long-term, India can grow by 5-6 per cent, which is easily manageable and will set the right tone.”

DICV entered the Indian market with the roll out of its Bharat Benz trucks range, which were rolled out at its Rs 4,400 crore plant in Oragadam. The plant manufactures trucks in the 6-49 tonnes category, catering to the needs of the Daimler Truck Asia’s brands and their diverse applications.