Daimer India CV sells 13,081 units in 2016, down 7% YoY

Daimler India Commercial Vehicles (DICV) has reported sales of 13,081 units in 2016, down 7 percent from the 13,997 units it sold in 2015.

This, the company says, was due to challenging domestic market conditions, which had turned negative in the second half of 2016 after a good first half. However, surging export numbers helped buffer the downturn in the domestic market. Last year saw DICV sell its 40,000^th BharatBenz truck and also expand its network to over 130 sales and service touchpoints. In August 2016, the company produced its 50,000^th vehicle at the Oragadam plant, around four years after start of production.

For 2017, the company expects growth to come from a new sub-9-tonne truck for export and a new generation of BharatBenz HCVs for India. According to Marc Llistosella, president of Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and head of Daimler Trucks Asia, “Our Indian operations at DICV are a cornerstone of our success at Daimler Trucks Asia. With the launch of a third product line for exports in 2017 at DICV, we will enter the next stage in the strategic collaboration of DICV and MFTBC.”

DICV is to start production of the third truck family for exports in the first half of this year. The new, sub-9-tonne vehicles will initially be designated for exports as Fuso brand variants.

Erich Nesselhauf, MD and CEO, DICV, said: We have kept our focus on profitable growth in 2016, which has been a mixed year for the Indian CV industry at large. Thanks to our successful exports, we have been able to more than compensate challenges in the domestic market.”

DICV says its vehicle exports more than doubled in 2016 over 2015 numbers. Since the start of exports in 2013, it has shipper 7,500 units to 30 export markets. Export of parts from DICV’s extensive Indian supplier base to other Daimler plants in Japan, Europe, North America and Brazil, rose steadily and crossed the 35 million parts mark.

Outlook for 2017
Elaborating DICV’s outlook for 2017, Nesselhauf said: “While the market environment will continue to hold challenges for the industry, we are planning to advance with our BharatBenz brand based on strong products, leading technologies and an even stronger focus on the customer.”

“A key growth driver will be the new generation of our BharatBenz heavy-duty trucks. In 2016, BharatBenz presented a new generation of its medium-duty trucks. In 2017, it will complete the upgrade of its entire truck portfolio with the launch of its new-generation heavy-duty trucks in the segment between 16- and 49 tonnes GVW.”

DICV, which has been selling BS IV-compliant vehicles since over a year ago, also expects to benefit from the Indian CV industry’s transition to BS IV.