Go Back   Team-BHP > BHP India > Commercial Vehicles


Reply
 
Thread Tools Search this Thread
Old 7th July 2008, 18:15   #1
Senior - BHPian
 
hanmust's Avatar
 
Join Date: Dec 2005
Location: Calicut
Posts: 2,479
Thanked: 96 Times
Default Daimler Hero Commercial Vehicles production plant to be located in Chennai

Stuttgart/Delhi, Jul 07, 2008
  • New truck plant to be constructed in Chennai, Southern India
  • Joint venture acquires 1.6 square kilometers (approx. 400 acres) plot
  • Site decision based on proximity to suppliers, port, good infrastructure and skilled labour
The Indo-German joint venture Daimler Hero Commercial Vehicles (DHCV), which was founded a few weeks ago by Hero Group and Daimler AG, concluded negotiations concerning its production location this week. The company decided in favour of the city of Chennai on the east coast of Southern India, which is also India's fourth-largest city and the capital of the state of Tamil Nadu.

The Memorandum of Understanding (MoU) was signed today in Chennai in the presence of M. Karunanidhi, Chief Minister von Tamil Nadu by M. F. Farooqui, Industry Secretary of the State of Tamil Nadu, Sunil Kant Munjal, Chairman of Hero Corporate Service, Andreas Renschler, Member of the Daimler Board of Management and Head of Daimler Trucks as well as by DHCV’s CEO Marc Llistosella and Co-CEO, Amit Chaturvedi.

The key factors leading to the choice of the Chennai site for the future production plant were proximity to important suppliers, city's infrastructure, transportation connections and the large number of well-qualified skilled workers in the region.

The plant site, which measures 1.6 square kilometers (approx 400 acres), is located at Oragadam, District Kanchipuram, in the direct neighborhood to several supplier parks where Daimler Hero Commercial Vehicles could also secure sites for future suppliers.

The Indo-German joint venture will soon begin the construction of a new factory in Chennai, where it will produce commercial vehicles under a new brand name for the Indian volume market and exports. Starting in 2010, the plant is to produce up to 70,000 trucks in its initial phase of operation. At a later point, the production of trucks for export markets whose product requirements are similar to those of the Indian market is planned.

DHCV is aiming to achieve a localization rate of up to 80% in order to optimally utilize cost advantages. The proximity of the Chennai plant to the local supplier industry will help greatly utilize these cost advantages and will also help the local industry and community.

Daimler AG and the Hero Group signed the contract establishing the joint venture in Delhi on April 21. Total investment in the Indo-German joint venture will amount to over €700 million over the next five years. The equity capital brought in by Daimler and the Hero Group will amount to €360 million. Daimler will contribute €220 million of this amount as a direct foreign investment in India.

About Daimler Trucks
Daimler Trucks is a division of Daimler AG and the world’s leading truck manufacturer. Its five leading truck brands - Mercedes-Benz, Freightliner, Sterling, Western Star, and Mitsubishi Fuso - generated revenues of € 28.466 billion in 2007 on sales of more than 467,667 units worldwide.

About the Hero Group
The Hero Group, which was founded more than 50 years ago by the Munjal family, is a conglomerate with numerous divisions and products that generate annual revenues of over $4 billion. The company has an excellent network and comprehensive knowledge of the Indian market.
Hero Honda Motors Ltd. - a joint venture between the Hero Group and Honda - is the world’s leading motorcycle manufacturer and has built more than 20 million motorcycles for the Indian market to date.
hanmust is offline   Reply With Quote
Old 7th July 2008, 18:25   #2
Senior - BHPian
 
smsrini's Avatar
 
Join Date: Sep 2007
Location: Bangalore
Posts: 1,003
Thanked: 256 Times
Default

Mitsubishi Fuso is very likely to be the brand they will bring to India under this JV. Mercedes Benz trucks ( Actros ) are already selling via the CBU route here..
smsrini is offline   Reply With Quote
Old 7th July 2008, 19:43   #3
BANNED
 
Join Date: Jul 2008
Location: NA
Posts: 513
Thanked: Once
Default

Good that new ventures are coming up. I just hope GOVT. to frame a policy for equitable distribution of projects in the country. In this way simultaneous growth would take place & move the country ahead at a faster pace. Just pockets of modernization would aid in widening the gap between rich & poor.
bhp1 is offline   Reply With Quote
Old 7th July 2008, 20:51   #4
BHPian
 
Join Date: Jan 2008
Location: Bangalore
Posts: 197
Thanked: 7 Times
Default

Quote:
Originally Posted by hanmust View Post
Starting in 2010, the plant is to produce up to 70,000 trucks in its initial phase of operation.
I am skeptical about the volumes in year of commencement of operations. Even if its in the 10-15T range, 70000 in first year seems ambitious.

Looks like the CV industry in India is going to go through some pain with so many new entrants.
jagan0677 is offline   Reply With Quote
Old 7th July 2008, 20:59   #5
Senior - BHPian
 
AMATMO's Avatar
 
Join Date: Jul 2007
Location: Bangalore\GOA
Posts: 1,456
Thanked: 2 Times
Default

how much would this reduce the price for the truck?

what is it now,how much would a cbu cost?
and what is likly to be the price after is built here?
AMATMO is offline   Reply With Quote
Old 8th July 2008, 08:45   #6
BHPian
 
dude131's Avatar
 
Join Date: May 2008
Location: Goa / Melbourne
Posts: 125
Thanked: 0 Times
Default

According to the article on Economic Times states " DHMC will launch an all new brand of commercial vehicles in India and for export. The Stuttgart based Daimler will not bring its existing international truck brands - Mercedes Benz, West Star, Freightliner, Sterling and Mitsubishi Fuso - but develop a new full channel of low-cost range of trucks for the domestic and export market."

Would have been nice to see brands like Freightliner or Fuso on Indian roads.

Source: Economic Times, 2008, "Daimler-Hero JV to start in 2010, make 70,000 trucks", Bennett Coleman & Co. Ltd. viewed 7th July 2008.
Daimler-Hero JV to start in 2010, make 70,000 trucks- Automobiles-Auto-News By Industry-News-The Economic Times


Also "hanmust" please cite the source of your article.

Last edited by Jaggu : 8th July 2008 at 10:36. Reason: Font tag
dude131 is offline   Reply With Quote
Old 8th July 2008, 18:17   #7
Senior - BHPian
 
snaronikar's Avatar
 
Join Date: Jun 2007
Location: Bengaluru
Posts: 2,845
Thanked: 23 Times
Default

Saw this in today's Hindu news paper. Looks like Chennai is heading for one major hub for auto makers and auto parts makers (maybe next only to Pune).
snaronikar is offline   Reply With Quote
Old 8th July 2008, 23:09   #8
Senior - BHPian
 
aaggoswami's Avatar
 
Join Date: May 2007
Location: Vadodara
Posts: 4,675
Thanked: 1,426 Times
Default

Quote:
Originally Posted by hanmust View Post


DHCV is aiming to achieve a localization rate of up to 80% in order to optimally utilize cost advantages. The proximity of the Chennai plant to the local supplier industry will help greatly utilize these cost advantages and will also help the local industry and community.

One more link. The article states that the company is gunning for a high level of local content. Its good news as the products will now be more sensibly priced.

The link is :
Daimler-Hero venture to have high local content

Quote:

The article states :

Quote:
Tuesday, July 08, 2008
Daimler-Hero venture to have high local content
Chennai, The joint venture of Daimler AG and Hero Group, which today formally signed a MoU
with the Government of Tamil Nadu for setting up a Rs 4,746-crore greenfield commercial vehicles
facility in the State, will start with a high level of localisation ? 80 per cent.

The plant of Daimler-Hero Motor Commercial Vehicles Ltd (DHCVL) is coming up on a 400-acre plot at Oragadam,
near Chennai, a growing industrial suburb, sandwiched between the two automotive hubs of Maraimalainagar and Sriperumbudur.

70,000 vehicles

From 2010, the joint venture will produce about 70,000 light and medium duty commercial vehicles.

The project will provide employment to 3,000 people and generate over 20,000 indirect jobs.

The ?80 per cent local content? aspect of the project has enthused the auto components manufacturers here,
who believe that they may need to put in fresh investments to cater to DHCVL.

A number of auto parts vendors told Business Line today that with the existing players also ramping up volumes,
it would be difficult to supply to the new comer from their existing plants.

?700-m investment

DHCVL will invest over ?700 million (Rs 4,746 crore) over the next five years, of which ?350 million will be the equity.

Of this, Daimler will contribute ?220 million as foreign direct investment.

DHCVL decided on Chennai considering its proximity to vendor base, infrastructure, transportation connectivity and
the large number of skilled workers.

Source : Business Line (Online Edition) (7/7/2008)
aaggoswami is offline   Reply With Quote
Old 9th July 2008, 14:32   #9
Senior - BHPian
 
hanmust's Avatar
 
Join Date: Dec 2005
Location: Calicut
Posts: 2,479
Thanked: 96 Times
Default

The source was from media.daimlerchrysler.com.

When I talked to Mr.Wielfred Aulbur, CEO & MD of MB-India, he mentioned that in this JV either a new brand will be brought out or the exsisting brands like Fuso, or so will be rolled out to Indian market. Anyway they won't bring the Mercedes benz brand under this JV.

Last edited by hanmust : 9th July 2008 at 14:34.
hanmust is offline   Reply With Quote
Old 9th July 2008, 17:06   #10
Senior - BHPian
 
Join Date: Oct 2005
Location: Faridabad/Delhi
Posts: 1,594
Thanked: 439 Times
Default

Quote:
Originally Posted by hanmust View Post
When I talked to Mr.Wielfred Aulbur, CEO & MD of MB-India, he mentioned that in this JV either a new brand will be brought out or the exsisting brands like Fuso, or so will be rolled out to Indian market. Anyway they won't bring the Mercedes benz brand under this JV.
That's because they need to protect Tata Motors in which MB still holds over 6% equity.
directinjection is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Daimler India Commercial Vehicles - 20,000 trucks sold Aditya Commercial Vehicles 3 14th December 2016 17:04
Daimler India Commercial Vehicles opens new bus plant, unveils new products Aditya Commercial Vehicles 18 17th July 2015 13:36
Mercedes Benz Buses now part of Daimler India Commercial Vehicles Redline6800 Commercial Vehicles 9 25th May 2013 06:19
Daimler India Commercial Vehicles unveils Test Track at Oragadam, near Chennai Dippy Commercial Vehicles 12 25th March 2010 20:12
Hero pulls out of Daimler Commercial JV hanmust Commercial Vehicles 2 23rd April 2009 15:46


All times are GMT +5.5. The time now is 21:16.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks