Daimler India has said it plans to add 350 commercial vehicle dealerships across the country over next two years.
India is a key commercial vehicle market for Daimler, both in terms of sales and production. India accounts for significant volume sales for medium & heavy-duty trucks and buses, and is a production hub for the company, exporting to nearly 50 overseas markets.
The company achieved major production milestones in 2020 despite the disruptions caused by COVID-19. It ramped up its FUSO bus production for the export market this year and achieved the milestone of 1000 BSVI compliant heavy-duty truck production in Q2 2020.
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, says the strong headwinds faced by the commercial vehicle industry in India due to COVID-19 and economic instability have not affected Daimler India Commercial Vehicle (DICV)’s expansion plans.
“The strategic move, which is part of its India strategy announced last year, will significantly deepen its penetration in the Indian market,” he says.
“Daimler is a strong truck brand in India. The company accounted for 5.8% market share in 2019. With a rebounding economy, the medium & heavy-duty truck and buses market is forecast to see an increase in sales volumes.
“With an enhanced dealership and service network, and increased focus on digitization of business, Daimler will emerge as a better positioned brand and earn significant competitive benefits in India.”