We also make buses
Daimlerchrysler isn’t doing too badly for itself in India, cantering along at a growth rate of 22 per cent (till August) in 2007, having sold 1,385 Mercedes-Benz cars in India. Yet, compare those volumes to neighbouring countries and the numbers don’t appear so red-hot. After all, China sells 10 times the Mercs India does, and countries like Thailand and Singapore outsell India by a factor of two.
But then the Stuttgart-headquartered auto giant isn’t only about cars.
Even without the Chrysler group—80.1 per cent of which will be sold to a private equity firm; the company is now set to be called just Daimler AG—the company has substantial commercial vehicles operations, which include trucks, buses and vans.
And Wilfried Aulbur, Managing Director & CEO, DaimlerChrysler India, doesn’t rule out the possibility of commercial vehicles being a bigger business for the domestic operations in the medium term (although globally cars is clearly the biggest chunk of the portfolio).
Last year, the India subsidiary entered the trucks market, in the heavy-duty applications segment (targeted at the mining belts). Now, the company is entering the luxury coaches market, in an alliance with local bus maker Sutlej Motors. Daimler will make the chassis, and Sutlej will build the body. Production is targeted for the first quarter of 2008.
Daimler is focussed on the high-end segment for inter-city buses that was created by Volvo. “As the road network improves, demand for high-end buses will grow. Travellers expect comfort, convenience and safety, and operators are looking for efficiency and performance,” says Aulbur.
The action in luxury coaches is doubtless increasing, with Tata Motors and Ashok Leyland sharpening their focus in this segment; recently Swaraj Mazda also launched luxury buses built on the Isuzu chassis. But then a product from the Merc stable promises to be special—even if it’s a bus.
