Daimler is a breath of fresh air in Indian truck market, says Wolfgang Bernhard

It has been 18 months since Daimler AG, world's largest commercial vehicle maker, began selling its trucks in India. It is considered to be the toughest truck market in the world. Its BharatBenz branded trucks have received a fairly good response despite the recessionary conditions and Daimler Commercial Vehicles India has become the fourth-largest player in the market. On Thursday, it announced plans to enter the bus segment and will invest Rs 450 crore for a dedicated bus manufacturing facility. Wolfgang Bernhard, Daimler AG Board member responsible for Daimler Trucks & Buses who laid the foundation stone for the facility spoke to N. Madhavan of Business Today on Daimler's journey so far in India and the learning and opportunities he sees going forward. Excerpts:

Q: India has been a minefield for global truck majors. Many of them have entered and failed in the past. How has Daimler's performance been so far?

A: Obviously, the market is very different from the time we began this adventure. However, we have been able to counteract much of the difficulties we faced in the market. We can proudly say that despite all the difficulties in the market we are moving according to our plan. We are happy with the number four position we have achieved in just 18 months of operations. We will not go away. We will stay here and pursue our fortune in India.

Q: What are the challenges and opportunities you see in a market like India?

A: We have reached the number four position in India when the current market conditions are bad. When the demand for trucks comes back, there will be a huge opportunity. We will grow our dealerships and the bus is another addition to what we have now. We are a breath of fresh air in the Indian truck market and providing good value in terms of fuel efficiency and safety. Indian customers are loyal - it is difficult to persuade them to come to us. The ones we have won over are very happy. We are proud to do business with them and earn their loyalty.

Q: In your view, how does India compare with other emerging markets?

A:  India is a market with specific needs. The most important factor of success is understanding the Indian customer. We have done it right. Other foreign companies had failed to do so because they entered with pre-conceptions and prejudices. We tried to be humble and understand the market. Customers are happy with our products. They say our products are just what they need - neither too much nor too little.

Q: Where do you see your Indian operations in Daimler's scheme of things five years down the line?

A: We will expand here and continue to grow. The fourth position is not the end of the line. We also see good opportunities to export out of India. There are many countries that have similar product needs especially in Africa and South East Asia. We intend to export to those countries and very concrete plans exist for that. There are ample opportunities. We will be around.

Q: What lessons have Indian operations taught you? Have you been able to take these lessons back to Stuttgart?

A: There are number of lessons. The first is that one size does not fit all. India is a very specific market with very specific needs. Vehicles for this market need to be tailor-made. Everybody in Stuttgart understands that. Our supply base here is very capable and qualified for global supply. We are already sourcing heavy crank shafts from here for our global needs. Again, what we learnt is that we at Daimler can achieve all these. There were questions about whether Daimler, which is known for premium products, can actually do well in India. We are very happy and proud that we could do so.