Daimler India Commercial Vehicle's order book is complete for the rest of the calendar for exports. However, powerful traction in the domestic market has improved its BharatBenz brand (to) cross a critical mark of 10% market share, operating director Satyakam Arya replied.
In India, the unit of the world's largest truck producer Daimler AG expects the country's commercial transport market to enter an upcycle of double-digit extension for the next 3-4 years. Given the powerful traction for 'Made in India' trucks globally and an anticipated bounce back in demand in the domestic market, the German firm had recently committed a little over $300 million of properties in the country that it hopes will become one of its top five businesses in the world in five years.
Daimler India Commercial Vehicle's order book is complete for the rest of the calendar for exports. However, strong traction in the domestic business has helped its BharatBenz brand cross a critical mark of 10% market share, managing director Satyakam Arya replied. "There is a strong uptick in demand and even the long haul part of cement-steel has started to demand more trucks in tandem with continued demand for e-commerce and production space," he told ET. "The current upcycle is likely to provide for an extended period of three to four years."
Arya expects India's average heavy truck business to double in 2021, followed by 30-40% growth in 2022 before securing 15-20% growth in 2023 and 2024. Thus, the market is on the recovery path after three down-cycles in 10 years.
Daimler India has passed the 10% market share mark in its addressable market of 10-tonne to 55-tonne commercial vehicles. The volumes in these parts are expected to cross 200,000 units this calendar, rising over 100%. Arya said Daimler has enough capacity to obtain on the upcycle, and the financing lined up is to upgrade goods and participate in increasing exportation potential. The overseas business accounts for almost 40% of Daimler India's total revenues, and it is set to rise further.
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