Amidst rumours that DaimlerChrysler and Scania are eying up India’s Eicher Motors with a view to taking a share in the company, S Sandliva, non-executive chairman at Eicher Motors gave an interview with CNBC-TV18, published on domain-b’s website.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
He said that a story in Economic Times of India reporting that DaimlerChrysler is likely to increase its stake in Eicher Motors to over 20% is speculative. DaimlerChrysler has owned a 3% indirect stake since the mid-1980s, through Mitsubishi Fuso, which is now 85% owned by DaimlerChrysler.
Sandliva did say that “Almost all the world players will be talking to Indian companies. But this is not to say that XYZ is actually dealing with somebody and trying to finalise something.”
Indeed the Economic Times article does itself go on to say that DaimlerChrysler has been talking to a number of commercial vehicle makers in India, including Tata Motors and Ashok Leyland, as part of its market evaluation following the launch of its Actros range of trucks in June this year.
Sandliva went on to say that Eicher Motors already has a technology partner in Mitsubishi, which has supplied Canter technology. However Eicher has developed its LCV and HCV models in-house. He added, however, that “if there is an opportunity in the international market to tie up with people and if it is going to be a win-win situation for our company and the international company, then it is worth it.”
Eicher has around 2,400 employees at five manufacturing plants and various offices around India. It produces trucks and buses, motorcycles, and automotive components. According to Sandliva, Eicher Motors grew 24-25% in the first five or six months of the year, in line with growth in the Indian industry.
