BharatBenz-branded buses to roll out by 2015
As a global leader in the manufacture of automobiles, be it trucks, buses, vans or cars, Daimler continues its tradition of introducing ground-breaking technologies and superior products. The auto major brings in the very best for its customers, lives and breathes a culture of operational excellence based on shared values, with its corporate history featuring numerous innovations and pioneering achievements, which are the foundation for its claim to leadership in the automotive industry.
On these sidelines Daimler India Commercial Vehicles (DICV), the wholly-owned subsidiary of Daimler AG, laid the foundation-stone for its new bus plant at its existing plant in Oragadam near Chennai in March. Despite the hot summer weather, the Daimler delegation from the German headquarters and their Indian counterparts enthusiastically participated in the function.
Dr. Wolfgang Bernhard, Daimler AG Board member, responsible for Daimler Trucks & Buses, laid the foundation for the new plant in the presence of Mr. Hartmut Schick, Head of Daimler Buses and CEO EvoBus GmbH, Mr. Marc Llistosella, Managing Director & CEO, DICV, Mr. Markus Villinger, Head, Daimler Buses, India, dealers, suppliers and DICV officials.
Addressing the gathering, Dr. Wolfgang Bernhard said: “India is one of the largest emerging economies with a big potential for growth. With its huge population there is a greater need for mobility. India’s population is nearly as big as China’s, but its bus market is nearly half of China’s, thereby indicating considerable scope for growth in which we intend to participate. Our new plant in Chennai perfectly fits into our strategy of producing the best products with the best technology and it will generate additional growth for Daimler trucks and buses.”
The new bus plant covering an area of 27.91 acres will be within the existing premises of DICV. Construction of the plant which will manufacture and assemble buses under the Mercedes-Benz and BharatBenz brands will be completed by the second quarter of 2015. The company has earmarked an investment of Rs. 425 crores for the project with an installed capacity of 1,500 units in the initial phase which could be further expanded to 4,000 units subsequently.
Daimler India buses will be offered in 9t, 16t and above 16t categories in both front- and rear-engine configurations. The rear-engine buses will cater to the premium segment and will be branded ‘Mercedes-Benz’, while the front-engine buses will share the components of the BharatBenz trucks and will be branded ‘BharatBenz’. The Oragadam facility will thus be the only Daimler truck plant worldwide that manufactures three brands of trucks and buses (Mercedes-Benz, BharatBenz and Fuso) as well as engines under one roof.
For its front-engine buses, Daimler has partnered Wrightbus, a leading global player in bus body building whose state-of-the-art bus body building facility will be part of the new bus plant. The bus body will be superior in terms of technology and reliability meeting Daimler’s global standards of quality and efficiency.
Leveraging synergies
In April last year, DICV had consolidated commercial vehicle operations in India by integrating Mercedes-Benz Buses business into its operations. Subsequently, the Marketing, Sales & Service of Mercedes-Benz buses were aligned to the marketing function of DICV in line with Daimler’s global practice to ensure better synergies in business verticals. In line with the integration, the existing and upcoming dealership network of DICV which caters to the BharatBenz range of trucks will also participate in the Daimler Bus business.
“We will build buses from Chennai and will benefit from the synergies with our existing range of BharatBenz trucks. Synergies will also come in collaboration with our partners as we already have a very strong network of suppliers and dealers here in India. I am very happy to welcome our new partner Wrightbus to join us in this venture. We already have 75 dealers with our ongoing business and hope to cross 100 by the end of this year. Daimler India is a success story, and with BharatBenz buses, we will add another chapter to it,” added Dr. Bernhard.
Mr. Hartmut Schick observed: “Our two-fold strategy with BharatBenz and Mercedes-Benz buses allows us to cater to the different needs of Indian customers perfectly well. In terms of safety, fuel efficiency, quality and comfort, both our brands will set new standards in the Indian bus segment.”
Earlier, in his welcome address, Mr. Marc Llistosella said: “We at DICV are extremely proud and confident about this new beginning. Since inception, we have delivered on all our promises for the Indian market, and we are continuously achieving new milestones. BharatBenz, having already achieved the No.4 position in trucks in India, has now become the preferred brand for most of the truck customers, thanks to its high performance products backed by best-in-class service levels. I am confident that the new bus project will continue to deliver same level of promise and experience to the customer.”
Mr. Markus Villinger, in his address, said that the new bus plant would roll out the first buses by the second quarter of 2015 and that the bus division would have a dedicated workforce of 300 people, besides using the synergies of DICV’s existing expertise.
QUICK BITES
• Daimler’s new bus manufacturing plant will be spread across an area of 27.91 acres and will be constructed within the existing premises of DICV at Oragadam.
• The plant has an installed annual capacity of 1,500 units in the initial phase which can be further expanded to 4,000 units subsequently.
• An initial investment of Rs. 425 crores has been earmarked for the project.
• The new plant would roll out the first buses by Q2 2015.
• Daimler Buses in India will be marketed under two brands – Mercedes-Benz and BharatBenz.
• The buses will be offered in 9t, 16t and above 16t categories in both front- and rear-engine configurations, with the former being branded as BharatBenz and the latter as Mercedes-Benz.
Wrightbus
Wrightbus is the UK manufacturing division of the Wright Group which was established in 1946. Increasingly recognised as one of Europe’s leading providers of passenger transport solutions, the Wright Group has its reputation built on quality design and world-class engineering.
Wrightbus offers the largest portfolio of vehicles in the UK covering midi, maxi, full-size, double-deck, articulated and hybrid-electric categories with the widest range of chassis. Flexibility and choice, combined with quality of design, have elevated the company to the position of the largest independent manufacturer in the UK.
Daimler in 2013
In 2013, Daimler sold more than 2.4 million vehicles worldwide with a revenue of 118 billion Euros, out of which 65 per cent was from outside Europe. The German giant employs over 2,75,000 employees worldwide, while its brands are some of the most valuable passenger car and commercial vehicle brands worldwide like Mercedes-Benz, Freightliner, Fuso, Western star and BharatBenz,. Daimler is present in all relevant bus markets around the world and has a strong international network with production plants in Europe, Turkey, Latin America, and Mexico.
In 2013, the company sold a total of 33,700 buses and chassis worldwide earning total revenues of 4 billion Euros, which means a growth of five per cent over the previous year. The company launched its first-ever series of buses that meet the Euro VI emission standards in Europe and Euro V standards in Brazil, with excellent results in fuel economy by reducing more than eight per cent consumption.
Another field of action is sustainable mobility solutions. With its BRTS systems, Daimler has created successful transportation solutions for urban buses. Around 17,500 Mercedes buses are used in 25 BRTS systems worldwide. The company has employed 16,000 people in its bus segment.
As for its trucks, Daimler sold half-a-million units in 2013 with revenues of 30 billion Euros around the world. The company has almost 80,000 employees in this part of business. In Europe, with its Mercedes-Benz trucks, it is a clear market leader. In Brazil every fourth truck is a Mercedes-Benz truck, and in the US it offers its trucks as Freightliners and Western Star which are undisputed leaders in that part of the world.
In Japan, with the Fuso brand, Daimler has developed hybrid trucks. In China, it has a JV with its Chinese partner, Foton, while in India it has already occupied the fourth place in the truck market with its BharatBenz range of trucks.