BharatBenz heavy responsibility vans on the meeting line on the Daimler India Commercial Vehicles plant in Oragadam close to Chennai.
German truck and bus maker Daimler India Commercial Vehicles (DICV) is planning to ramp up production capacity in two levels because the Oragadam plant is working in full swing, mentioned MD & CEO Satyakam Arya.
“Currently, both production lines are operating at 100% capacity in two shifts,” he mentioned throughout an interplay. “We are producing 36,000 vehicles per annum against the annual installed capacity of 72,000 units,” he added.
Over the following few months, production capacity will likely be elevated by 39% to 50,000 items by debottlenecking the production line and ramping up provide chain. “This will not lead to any major capex,” Mr. Arya mentioned.
“The enhanced capacity will be sufficient for us until 2025. Thereafter, we will take a call depending on the market growth rate,” he mentioned.
However, Mr. Arya was cautious in his forecast as he expects the market demand for vans and buses in 2024 both to be flat or lower barely as it’s an election 12 months.
During CY2022, DICV posted 37% development in income and 25% in gross sales volumes.
“The first five months of CY2023 have been good due to greater activity in freight movement, huge investment in infrastructure development, the economy doing well and exports volume having picked up well,” the CEO mentioned. “We are growing on the same lines and would be above the market curve,” he added.
Quoting experiences, he mentioned the medium and heavy industrial automobiles (M&HCV) section noticed a peak in 2018 by promoting 3.8 lakh items. In 2020, this got here down to 1 lakh items and recovered to 2.4 lakh items in 2021 and a pair of.8 lakh items in 2022, respectively.
“This year, we expect the market to hit 3.3 lakh units. Going forward, it will grow by single digit and in seven years’ time it is poised to grow at a CAGR of 6-7% and in line with GDP growth, it will hit the half-a-million mark,” he mentioned.
To a query on different gas powered automobiles, he mentioned DICV was engaged on each electrical and hydrogen. While EV is greatest suited to intercity operations (LCVs and buses), hydrogen is suited to lengthy haul (vans).
He additionally mentioned with a view to offering gas effectivity and best-in-class product to prospects, DICV had upgraded the horsepower of heavy responsibility vans in your entire BharatBenz vary from 280 to 320 and 230 to 260.
