Daimler studies opportunities in defense and off-road business
CHENNAI Daimler India Commercial Vehicle , the 100% subsidiary of Daimler, based in Stuttgart, is studying opportunities to enter defending and manufacturing engines in the offroad road segment, a senior official said.
The company currently has presence in commercial vehicle and buses segment under Daimler India Commercial Vehicle and Daimler Buses India respectively.
DICV CEO Satyakam Arya He said the company was also 'talking to some players' when entering the cargo aggregator segment.
On company's future plans, he said there were two approaches one currently studying to enter segments like defending and the other was making off highway engines.
The second is more progressive for a future-oriented approach. There, we will use our culture of innovation, we will find new deal ideas and sources of income, he told reporters.
In preparing, he said, for example, the company is looking at the cargo aggregation space to verify if it makes sense to enter.
We believe it is a fast growing segment and a great facilitator for us to penetrate the market, he added.
On the company's performance in 2019, DICV's wholsale deal went down by 36 per cent while retail fell by 29 per cent.
In 2019, the company expanded its presence in the country by adding 54 contact points in 2019, he said. By 2020, we plan to add another 25 percent of retail expansion ...
Regarding exports, Arya said the company registered a 14 percent growth by sending 8,000 trucks to 53 markets.
Later, answering a question about how the company planned to enter the motorway motorway space, he said, we are seeing the opportunities. We have two series of engines that produce locally in India.
Six and four cylinder engines. Both adapt very well to the off-road sector. So we have begun to study ... he said.
The company has begun interactions with customers in the viability process, he said.
On plans to enter defending deal , he said the company also started studying the requirements from defending side when it comes to vehicles.
We need a four-by-four truck mostly. We have now begun a study on the development of that four by four, he added.
However, the company was aware that it has to cross one step on whether government of India was changing the regulation as current norm in defending is that companies headquartered outside India cannot supply to defending segment.
They (the Government of India) have also indicated that they will change this. And they have indicated that by April they will take a break from the rules, he said.
We are closely watching that and when that happens we will begin to develop ..., he said.
To a query, Arya said Daimler as a group was present in many parts of the world in terms of supplying off highway engines and also in defending .
We have the technology here ... he said.
He acknowledged the foray into new deal was to address the cyclicality in the commercial vehicle deal .
"The commercial vehicle is anyway a cyclical deal . We definitely are looking for ways to mitigate this and also to look for new revenue streams...," he said.