Mercedes Benz buses: With love from India

Shivani Kapoor | The Dollar Business

(From Left to Right: Marc Llistosella, Head of Daimler Trucks Asia, Markus Villinger, Managing Director Daimler Buses India and Erich Nesselhauf, Managing Director and CEO, Daimler India Commercial Vehicles) during the inauguration of DICV bus manufacturing plant. (Photo Source: www.daimler-indiacv.com)

  Looks like the ‘Make in India’ heat is truly on. The effect has now started showing on the lot of global commercial vehicle (CV) makers in India. India is fast emerging as an export-manufacturing hotspot for this camp of capitalists; and at a time when the Modi-led government is inviting foreign players to make, bake and take from the country. The latest announcement of Daimler AG (on May 28, 2015), the world’s largest truck manufacturer, to export buses under the Mercedes Benz brand from India is another indication that manufacturing is getting its due in the Indian mainland. The CV major announced that it will begin exporting its fully built buses to South East Asia and Africa from India. It has already started exporting bus chassis – built in its bus plant located in Oragadam, near Chennai – to Egypt. Daimler India also exports its made-in-India trucks to markets like Kenya, Nepal, Indonesia etc. Earlier this year, Scania Commercial Vehicles India Private Limited had inaugurated its bus manufacturing facility in Narasapura near Bangalore with a vision to make India an export hub for regions such as Asia, Middle East and Africa. So what is attracting global auto majors to India? “Initially, these automakers came to India to explore market opportunities. With high growth potential, improving manufacturing environment, lucrative export opportunities and upgraded quality, the established India as an export hub,” explained Vishnu Mathur, Director General of Society of Indian Automobile Manufacturers (SIAM), to The Dollar Business. The increasing exports of CVs from India can also be attributed to increased activity in the workshops of Indian original equipment manufacturers (OEMs) like Ashok Leyland and Tata Motors. These auto majors are taking the ‘Made in India’ brand to the world. Recently, Tata Motors announced to supply Completely Knocked Down units (CKDs) and Completely Built Units (CBUs) to TMT in Vietnam. As per SIAM, of the 85,782 units of CVs exported from India, Ashok Leyland exported 7,521 medium and heavy CVs, while Tata Motors exported 4,051 M&HCVs. Truth is, besides CVs, India has established itself as an export base for other global passenger vehicle (PV) brands. From Volkswagen, to Nissan to Hyundai – all popular auto brands are now selling India-made vehicles across other markets. Availability of low-cost skilled labour coupled with state-of-the-art technology and not to forget, India’s ideal position on the world map, augurs well for the future of auto and auto component exports. It’s this bright forecast that is perhaps persuading foreign auto giants to swarm to India. Seems, for the Indian auto industry, the 100 miles-an-hour highway ride has just begun!  

May 28, 2015 | 6:55 pm IST.