CHENNAI: Daimler India Commercial Vehicles (DICV) anticipates subdued demand for medium and heavy commercial vehicles (M&HCV) in 2024 calendar year. However, it is hopeful of long-term potential in the Indian CV market.
The company’s managing director Satyakam Arya said the demand is weak, about 11% lower, due to higher base effect, Parliamentary polls and said demand scenario to remain muted in the first two quarters of CY24. He expects the recovery in orders in Q3 and Q4 of 2024.
Speaking to the press persons in Chennai on Tuesday he said the company recorded the best ever performance in history in 2023 with 23,400 trucks and close to 2000 buses, registering 39% growth over the 2022 calendar year. The company truck volume increased by 35%, outperforming the market by 3 times, compared to 10% industry average, he said.
Bus volume sales doubled, outpacing industry growth. However, the company’s volume remains small compared to major CV players like Tata Motors and Mahindra. The company’s domestic revenue grew 21% as against 2022 cumulative sales including domestic and exports grew 13%.
Arya said the export volume to remain flat and the growth would come from domestic sales. DICV, wholly-owned subsidiary of German-based Daimler Truck AG, exports three brands Fuso, Mercedes-Benz and Frieghtliner to 60 markets. Its share of exports stands about 35%, being a net exporter and the slowdown in global market could have a major impact for the company.
He said the impact of China plus 1 and realignment of global value chain is still happening and the Red Sea Crisis has pushed up the freight and inventory cost. It launched four models of MY24 BharatBenz heavy-duty truck portfolio on Tuesday and expects to launch 10 models this year.
Export to remain flat, domestic sales to grow
Satyakam Arya said the export volume to remain flat and the growth would come from domestic sales. DICV, wholly-owned subsidiary of German-based Daimler Truck AG, exports three brands Fuso, Mercedes-Benz and Frieghtliner to 60 markets. Its share of exports stands about 35%