The Indian unit of the world’s largest truck maker Daimler AG expects the country’s commercial vehicle market to enter an upcycle of double-digit growth for the next 3-4 years.Given the strong traction for ‘Made in India’ trucks globally and an expected bounce back in demand in the domestic market, the German firm had recently committed a little over $300 million of investments in the country that it hopes will become one of its top five markets in the world in five years.Daimler India Commercial Vehicle’s order book is full for the rest of the calendar for exports and strong traction in the domestic market has helped its BharatBenz brand to cross a critical mark of 10% market share, managing director Satyakam Arya said. “There is a strong uptick in demand and even the long haul segment of cement-steel has started to demand more trucks in tandem with sustained demand for e-commerce and construction space,” he told ET. “The current upcycle is likely to sustain for an extended period of three to four years.”
Arya expects the medium and heavy truck market in India to double in 2021, followed by 30-40% growth in 2022 before stabilising to 15-20% growth in 2023 and 2024. The market is on the recovery path after three down-cycles in 10 years.
Daimler India has crossed the 10% market share mark in its addressable market of 10-tonne to 55-tonne trucks. The volumes in these segments are expected to cross 200,000 units this calendar, growing over 100%. Arya said Daimler has ample capacity to capitalise on the upcycle and the investment lined up is to upgrade products and participate in increasing exports potential. The overseas business accounts for almost 40% of Daimler India’s total revenues and it is set to grow further.