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Daimler’s manufacturing plant in Chennai is set to begin exports to Asia and Africa.
The plant in Oragadam, an industrial hub to the west of Chennai, produces the BharatBenz range of trucks for the domestic market.
These will also be rebadged and exported under the Fuso umbrella to over 15 markets.
The first market will be Sri Lanka in June, followed by Bangladesh, Zambia, Kenya and Brunei later this year.
Strong demand
The Fuso brand of trucks, owned by Mitsubishi Fuso Truck and Bus Corporation (MFTBC), is sold in over 150 markets worldwide.
MFTBC is a member of the Daimler Trucks division of Daimler AG, which owns 89.29 per cent stake in the corporation.
Daimler India Commercial Vehicles (DICV) will aid MFTBC in Kawasaki, Japan, to service the demand in the Asian and African regions, by producing its own portfolio of Fuso trucks in Chennai.
The Fuso trucks manufactured in Chennai comprise five models – medium/heavy duty (25-49 tonnes) and light/medium duty (9-16 tonnes). More models will follow.
“The strategy is to optimise our manufacturing plants both in Kawasaki and Chennai, leverage the supplier base in India and achieve cost efficiency,” said Albert Kirchmann, Head, Daimler Trucks Asia and President, MFTBC.
“The Fuso trucks are meant only for exports. This year, we plan to export 1,000 Fuso units from Chennai.”
Marc Llistosella, Managing Director, DICV, said this is not a move to counter the swing in the Indian market.
“We always had an export plan from Chennai. We are utilising the production network to supply to different markets.”
Sales target
Daimler is betting big on Asia in the years to come.
The combined target of MFTBC and DICV is to double annual sales to 2,90,000 units by 2020.
Globally, Daimler has a sales target of five lakh trucks by 2015, of which it expects a dominant share from Asia.
This comes at a time when the first quarter earnings of Daimler AG have dipped, in the backdrop of a slump in auto sales in Europe.
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