BharatBenz ready for on-road action

The six-and-a-half-year wait is over! Daimler has officially launched its BharatBenz range of trucks in the Indian market, signalling the re-entry of the world leader into India with its tailor-made product range for the local market. The market launch was eagerly anticipated by dealers and customers, owing to the efforts which have gone into developing the products which are all set to revolutionize the Indian trucking industry.

Daimler’s Indian mission started nearly six years ago. Ever since, the plan has been executed to perfection, culminating in the market launch. The Daimler India Commercial Vehicles (DICV) venture has seen it all – extensive market study, localizing supplier base, new product development, lakhs of miles of testing, product range and plant unveil, power-packed pan-India yatra and, finally, the market launch to round off all formalities.

The first three products to hit the roads are the heavy duty trucks – 2523R and 3123R for the haulage segment and 2523C for the construction segment. The trucks will initially be available through state-of-the-art dealerships in southern and western India, while the outlets in the northern and eastern regions will follow in the coming weeks. The three trucks are the first among the range of 17 models that will be launched over the next 17 months.

“Today is an important milestone for all of us at Daimler and Indian trucking as, from today on, Indian truck buyers will have a new choice. A choice of trucks that are more fuel efficient, more reliable and in the end makes them more successful. BharatBenz is here, and we are proud to have delivered on the promise we made since 2010, to launch our trucks in September 2012. We will drive the change in the Indian market with a new product experience, a new sales experience and a new service experience for our customers”, said a jubilant Mr. Marc Llistosella, DICV Managing Director.

Best TCO on offer

BharatBenz offers value-for-money trucks with a strong focus on Total Cost of Ownership (TCO). Having undergone grueling tests, both at the state-of-the-art test track at its plant and on various Indian terrains, the trucks have been built with a promise of best-in-class reliability and performance. With exponentially rising fuel prices, the proven fuel efficiency of BharatBenz trucks is certain to prove a major differentiator when it comes to sales. The trucks boast of more than 10 per cent better fuel efficiency than that of the existing products in the market. The feedback received from some of its premium customers about the product performance has been positive and encouraging.

“BharatBenz gives you the best TCO in the market. Almost 60 per cent of the TCO is driven by fuel efficiency, and we are undoubtedly the best in fuel efficiency in India. We do not charge a premium for the high quality of our trucks in terms of drivability, cabin, comfort and safety. The customer only pays for the TCO”, added Mr. Llistosella.

Drivers’ choice

The heavy-duty trucks, based on the Mercedes-Benz Axor platform, have been localised to suit specific needs of Indian customers, featuring a six-cylinder engine with 230 HP (170 KW) in all three variants.

The trucks have a host of features, many of which are a first in the commercial vehicle industry, in order to provide a better on-road experience for customers in terms of performance, safety and comfort.

The trucks come with unique features like the intelligent-unitized-fuel-injection system, balance-type rear suspension and inter-wheel differential in the haulage trucks and inter-wheel/inter-axle differential locks in the construction trucks, the unique ‘engine-brake’ system, apart from others.

With customer demands on the rise, BharatBenz has come out with a very attractive package and is keen on grabbing the attention of the trucking community in India. The trucks have also travelled across the country in a 8,469 km journey and have caught the imagination of many a driver during the BharatBenz Power Yatra.

Expressing his views on the burning issue of driver shortage in the country, Mr. Llistosella was confident that the market launch would relieve the present condition as the BharatBenz trucks are made to improve the standard of drivers’ lives. The company is confident that BharatBenz would be any driver’s choice given the high standards of performance, comfort, and safety promised by the vehicles, which would reflect in an increment in his earnings from trucking.

The dealer network

Mr. V.R.V. Sriprasad, VP, Marketing, Sales & After-sales, DICV, said: “BharatBenz trucks will now be available through a state-of-the-art dealership network.

This network will offer complete sales consulting, 24X7 after-sales service with advanced interactive vehicle diagnostics, and roadside assistance for best service reach, leading to the lowest turnaround time in our workshops.

These dealerships will also provide tailor-made financial services, ensuring comprehensive attention to our customers, all under one roof.”

The company had received over 800 dealership applications from the auto retailer community in the country. As has been the DICV policy from day one, the BharatBenz team took to a challenging route, one which promised rich dividends, in order to pick the best of dealers. The company scrutinized the applicants with several quality-checks to ensure that the best service is provided to customers through its dealerships.

From the 800 applications received, only 28 were selected. The 28 dealers will be setting up shop at 108 different locations across the length and breadth of the country.

These locations have been chosen with utmost care, taking key factors such as density of truck and freight movement into consideration, along important highway routes in the country.

“We have chosen 28 dealers where we found the desire to excel and to partner with us, in creating a new trucking experience in India”, added Mr. Sriprasad.

By the end of 2012, 17 dealerships will be operational, covering 42 locations, and by 2013 all the 108 locations will be operational.

The dealerships are strategically placed along every 300 km on major trucking routes which will give its customers confidence enough and a psychological advantage to face an unlikely event of a breakdown.

The dealerships are also equipped with facilities for drivers to rest, which would go a long way in increasing their productivity at work.

“We have focused on enhancing value to our customer by offering a significant fuel efficiency advantage and aggregates are engineered for long lifespan and longer service intervals.

This, in turn, will reduce the operational cost and keep the trucks performing at full potential for longer periods of time, thus enhancing their useful life in our customer’s fleet,” he added.

BharatBenz Financial

Backed by the financial power and expertise of Daimler’s financial arm, Daimler Financial Services, customers will benefit from the captive financier under the name of ‘BharatBenz Financial’.

BharatBenz Insurance, India’s first Branded Commercial Vehicle Insurance, offers cashless facility, including zero depreciation and a host of other value-adds.

This integrated approach will offer the customers the combined benefit of products and financial services under one roof, making ownership a hassle-free experience.

BharatBenz also has tied up with four leading Indian financial institutions – HDFC Bank, ICICI Bank, Sundaram Finance and Kotak Mahindra Bank Ltd. – which will offer tailored financing solutions for customers. Additionally, several other banks and NBFCs, including Cholamandalam, SREI, Magma, IndusInd Bank, Axis Bank, YES Bank, Reliance Capital and L&T Finance, have also approved BharatBenz products with attractive terms and conditions.

All said and done, BharatBenz has finally hit the market. The year 2012 has been a challenging one for the Indian commercial vehicle market due to several reasons, and for all those who were looking for a change, BharatBenz might just trigger the next big revolution in the Indian trucking segment. It will be interesting to see the market shares of relevant players as time passes by, but one could take it for granted that it will be the customer who will benefit most from the new entrant. What BharatBenz would do to the Indian trucking industry, one must wait and watch…

Unique supplier-base

When it comes to working with suppliers, DICV had its unique way. The company came to India with a plan to localize by sourcing 85 per cent of the components from the local market. Never has a company achieved such a high percentage of localization within three years of operation, but in the case of DICV, the trucks are launched at a localization level of 85 per cent. The company took up the task of training some of the suppliers to transfer technical know-how and ensure that the products are made strictly as per the company’s requirements. The training and know-how transfer has resulted in all kinds of machining done at the supplier end, thus reducing the cost and simplifying operations.

DICV also has to its credit the upgradation of some suppliers who have never supplied to commercial vehicles in the past, a striking example being the South Korean supplier of the world-class cabin of the BharatBenz trucks.

Localization is one of the key factors to have significantly brought down the product cost, but the company had to work extremely hard to achieve the current target. Mr. Eric Nasselhauf, VP Sourcing, said: “We screened over 500 suppliers located in different parts of the country. We found some state-of-the-art suppliers and also some ‘hidden champions’ with strong technological capabilities.”

It is very interesting to note that some suppliers who have never worked with Daimler before have set up manufacturing facilities with investments close to 80 million Euro to be a part of the DICV project. Daimler’s supplier base is definitely one of its kind, and it is an encouraging sign to see Indian suppliers get the thumbs-up in the quality checks done by the world’s leading truck maker Daimler. This would certainly pave the way for better quality products to hit the Indian market, a significant step towards raising the bar in the trucking industry.

LDT production begins at Oragadam

DICV has just announced the start of production of its 9 tonne Rigid, 12 tonne Rigid and 12 tonne Construction BharatBenz LDT (Light-Duty Truck) range at its manufacturing plant in Oragadam.

Further to the market launch of three heavy duty trucks, BharatBenz will soon be ready with its offerings in the light duty segment that are based on the Fuso Canter platform.

Speaking on the occasion, Mr. Marc Llistosella, Managing Director & CEO, Daimler India Commercial Vehicles, observed: “We are well on track with our growth strategies and will have a good product mix for the customers. With fuel prices soaring, customers will want trucks that are more fuel efficient, reliable and robust. The BharatBenz LDT range will offer quicker turnaround time and the lowest total cost of ownership. In the coming months, we will strategically release our products in the market that will include LDT and HDT range.”

The Light-Duty range of BharatBenz trucks are based on the FUSO Canter, a well-renowned brand of Daimler, based out of Japan. A front-runner in the light-duty trucks, these vehicles form the backbone of the transport industry in most of Asia. The Canter is also well known in India through its presence on Indian roads owing to its association with other brands.

The LDT features a four-Valve per cylinder, 140 HP and 170 HP engines. Like the HDT, the LDT range offers a minimum of 10 per cent more fuel efficiency in comparison to the existing products in the market.