Daimler India Commercial Vehicles Achieved Remarkable Growth in 2023

Key Highlights:

•    DICV achieved outstanding growth in 2023.
•   Efforts to boost efficiency and expand reach paid off, with 350 new sales and service sites opened across India.
•    DICV plans to launch 14 new products in 2024, including innovative truck features and transmissions.
•    Despite challenges, DICV expects stable growth, especially post-elections, in the commercial vehicle market.
•    DICV highlights progress in sustainability, aiming for 90% renewable energy.

Daimler India Commercial Vehicles (DICV), a subsidiary of Daimler Truck AG, announced that in fiscal year 2023, the firm beat the entire industry volume in its operational areas by three and a half times.

The company accomplished significant milestones by selling 23,400 trucks and over 2,000 buses in the domestic market, representing 39% and 107% growth rates, respectively, over the previous year. Furthermore, DICV had a 13% increase in cumulative sales, as well as a 21% growth in revenue and parts sales.

Satyakam Arya, DICV's Managing Director and CEO attributed the company's performance to a multiple of initiatives implemented during the year. These initiatives were designed to improve operational efficiency, cut expenses, and focus on critical areas of the organization. 

The company also met its aim of opening 350 sales and service sites in India, expanding its reach into new markets. He stated that the company plans to grow significantly over the next five to seven years, which would be backed by a variety of activities, including new product launches.

Arya described the company's strategies in three areas: product leadership, empowering customers to be more successful in their businesses, and assuring future readiness. Under the product leadership strategy, the business intends to launch 14 new vehicles in three categories. It also intends to increase its touch points to 375 by the end of 2024, up from the current 350. Furthermore, the organization will implement Total Quality Management (TQM) principles to enhance its operations.

With almost all of its installed capacity of 36,000 trucks and 4,000 buses in use, the company is already optimizing assembly lines and increasing efficiency in specific areas. This increases the truck capacity to approximately 45,000 units.

Product Innovation

•    DICV plans to launch 14 new products across three segments in 2024.
•    An all-new rigid heavy-duty range, featuring several firsts, is set for launch in April 2024.
•   Daimler will introduce its own 12-speed AMT (Automated Manual Transmission) in BharatBenz trucks which will improve both driver comfort and operating economy.
•    A re-engineered construction and mining truck range aims to enhance productivity.

Launch of the MY24 BharatBenz Range

DICV plans to debut the all-new MY24 BharatBenz heavy-duty vehicles in the future months. According to Pradeep Kumar Thimmaiyan, President and CTO of DICV, the MY24 range is intended to set new industry norms by providing superior features in terms of total cost of ownership, technology, reliability, safety, comfort, and serviceability.

Thimmaiyan discussed the new products' features, stating that the all-new BharatBenz Rigid Heavy-duty line, which is set to premiere in April 2024, would include a variety of configurations powered by an advanced 6.7-litre, common-rail BS6-Stage 2 BharatBenz engine.

Commercial Vehicle Industry Outlook

Despite global geopolitical challenges and upcoming elections, DICV expects the light to heavy-duty market to remain flat in 2024. The expectation of a relatively flat market for trucks is around 350,000 units.

The first half of 2024 may see smooth sales, but the second half is anticipated to grow strongly post-elections. The bus market is projected to grow by 25-30% during this period.

Global Elections and Geopolitical Uncertainty

•    More than half of the world's population is set to participate in elections in 2024.
•    Indonesia initiated the electoral process, followed by ongoing elections in India.
•    Anticipation for upcoming elections in the United States before the year's end.
•    Persistent geopolitical uncertainty with two active wars worldwide.
•    Ongoing realignment of global supply chains amid various crises impacting businesses.
•    Increasing impact of Artificial Intelligence on business operations.

Sustainability Initiatives

•    Currently, 84% of manufacturing operations are powered by renewable energy, aiming for 90% by 2024.
•    Utilization of upcycled water in nearly 90% of plant functions, resulting in a substantial reduction of carbon footprint.

Diversity and Inclusion

•    Workforce diversity is addressed, with 11% comprising women currently.
•    The company aims to increase female representation to 14% by year-end.
•    Emphasis on fostering an inclusive and diverse workplace environment.

DICV’s Managing Director and CEO, Satyakam Arya, expressed optimism about sustaining this momentum in 2024. The company’s best-ever sales and financial growth underscore its commitment to excellence.

Also Read: Daimler Truck Hits Milestone: Over 1 Million Connected Trucks and Buses Worldwide

CMV360 Says

In 2023, Daimler India Commercial Vehicles (DICV) saw incredible growth, selling 23,400 trucks and 2,000 buses, beating industry expectations by a huge margin. Their hard work paid off with 350 new sales and service sites across India, making their vehicles more accessible. Looking ahead to 2024, DICV plans to introduce 14 new products and prioritize sustainability, aiming for 90% renewable energy. Despite challenges, they're optimistic about steady growth, especially after elections, showing their dedication to excellence and a greener future.