Daimler India CV enters used-truck business

This would facilitate exchange of old truck of any brand for new or used BharatBenz vehicles, said Satyakam Arya, MD& CEO, DICV.

 “As the number of BharatBenz owners rapidly increases, we feel it is the right time to tap the massive potential presented by the used commercial vehicle segment,” Arya said, noting that the pandemic was the right time to launch such a drive that would boost its ‘drive to owner’ initiative too.

 Daimler is gearing up to operate its second shift at the Oragadam plant, near here, from next week. This reflects the traction seen by the company, that claims to be adding 10 pc more customers every year.

 Having exhausted the BSIV stock in Q1 of May this year, Arya said redrawing entire business on hand in view of the COVID-19 and post-pandemic stages, included rebooting, reimagining and reforming its strategies. “We had anticipated a flat or 10 per cent de-growth prior to the pandemic but now the CV market is down 74 pc. Not only did we have to restart our operations but had to rejig the entire supply and value chain,” Arya said, highlighting the safety protocols and other challenges that were being handled on a daytoday basis.

 Re-prioritising investments, prudent cash management and keeping a constant eye on the lockdown announcements remain the key focal points for Daimler. This is aimed at building resilience so that the business is “agile and flexible” on the product and customer fronts, he said.

 Rajaram Krishnamurthy, VP, Marketing & Sales and Customer Service, chipped in to say for every new truck, three old ones were sold and the used vehicles segment was exploding with transactions going through multiple hands. Initially, the used vehicle business would cover trucks and then buses.

 Daimler is open to tie-ups with other companies to scale up its business. Apart from its captive financier, it is looking at tie-ups with NBFCs and banks, especially to push rural business.

 Arya said construction, mining and e-commerce businesses had led to good traction for Daimler that continues to stay invested in the India market. “Our recent investment MoU (extra investment of Rs 2277 cr) only demonstrates confidence in this market as we adjust and re-prioritise at a time when there is a segmental shift on the back of change in consumer mindset,” he added.