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Open to contract manufacturing for others: Daimler

Daimler India Commercial Vehicles, an arm of the world's largest truck maker Daimler, is investing Rs 4,400 crore for a new facility at Oragadam in Tamil Nadu.

twitter-logo PTI   Chennai     Last Updated: October 7, 2010  | 10:57 IST

Daimler India Commercial Vehicles (DICV) on Wednesday said it will evaluate possibilities of tying up with other global group companies for contract manufacturing at its upcoming facility near Chennai.

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.

"We will looks at all the possibilities when we come to them," Vice-president (Marketing, Sales & After Sales) V R V Sriprasad said, when asked if the company could enter into contract manufacturing.

If there are opportunities, in terms of addressing foreign markets or providing solutions to other Daimler group companies by going for contract manufacturing, the company will consider it, Sriprasad added.

"The company's focus, however, remains to become a significant player in the Indian commercial-vehicle market," he said.

When asked if DICV has spoken to any other Daimler group firm for contract manufacturing, Sriprasad said: "These are things continuously discussed at a higher strategic level. There 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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