The seeds of transformation were sown in February 2011, and preparations began in earnest to bring about a trucking revolution in India with world class new age trucks from BharatBenz, the brand dedicated to India by the world leader in trucking, Daimler.
Daimler, one of the worldís largest manufacturers of trucks above 6 tonnes, revealed the first model of the new BharatBenz truck. With its first-ever ëMade in Indiaí truck, BharatBenz will enter the promising Indian market for commercial vehicles. After developing to be the worldís third largest truck market in the past years, the Indian market for trucks over six tons GVW shows a volume of more than 300,000 units in 2011.
Amidst speculation of a slowdown in the Indian market, Mr. Marc Llistosella, Managing Director and CEO, Daimler India Commercial Vehicles Pvt. Ltd. (DICV), defiantly said during the sneak preview: ìThe Indian economy and the Indian nation will grow for the next 20 years, and that is for sure. We believe that the backbone of each society is the trucking industry and are very confident that in the next 10-20 years, itís an absolute best time to be here, itís an absolute best place to be, the market which will be the most dynamic market in the next 10 to 20 years.
The new BharatBenz Heavy Duty Truck (HDT) is a synergy of Indian engineering and German DNA. Following in March 2012, BharatBenz will by then unveil its entire truck portfolio in the 6 to 49 tons range.
Mr. Llistosella added: ìBharatBenz mirrors our long-term commitment to India, a commitment to offer modern trucks that will redefine the Indian trucking experience. Our trucks target the modern domestic segment in India, which is showing high growth potential. We are confident that the introduction of modern trucks with improved fuel efficiency, safety features and competitive pricing will make us the game changer in the Indian trucking industry.
The BharatBenz heavy duty truck is built on the Mercedes-Benz Axor platform, while the future medium- and light duty truck is built on the Fuso Canter and Fighter platforms. All new trucks meet the Indian BS III emission requirements. The trucks have been developed in India, for India and by specialist employees from India. Since a truck is an instrument with which a trucker works, the money earned out of it is important. The more the truck costs, the more is the calculation involved; the less it costs, the more the trucker earns, he added.
Trucks developed for India
BharatBenz trucks have been developed with the objective to create specific products for the Indian market. One key to success is to combine high performance of the trucks with fuel efficient consumption.
Our trucks will have optimum fuel efficiency and are technically evolved and designed to deliver better operation costs per ton/km. BharatBenz trucks will offer our customers superior Total Cost of Ownership with better value for money. And the truck drivers will experience a new dimension in terms of handling the vehicle, cabin space and ergonomically seating,î said Mr. Aydogan Cakmaz, Vice President, Product Engineering, DICV.
The engine capacity on offer in these trucks is in the range of 170 to 300 hp. BharatBenz has access to Daimlerís whole range of engines, which could see them increase the range to over 400 hp. However, the company is clear that it does not want to over-engineer and over-power at the moment because power in India comes with a price. If the customer demands a higher hp, the company has it ready in its portfolio.
Extensive testing
The company has been involved in extensive testing of its trucks, covering 40 lakh km under rigorous testing conditions. Mr. Llistosella said: ìTesting trucks is the base for satisfying customers and 40 lakh km (of testing) is a lot. We donít test with the customers, we test with ourselves. Testing is our business, not the customersí business.
The testing has been done in the companyís state-of-the-art test track which is of world class standard and also on Indian roads for practical validation. Since two years, testing is being done practically 24×7, that too in comparison with the existing products in the market.
A lot of R&D has gone into the testing process, and the company is confident that all factors, including overloading and poor road conditions, have been taken into account during testing. In addition, single vehicle owners, who usually overload their trucks, were invited to get first-hand experience of the truck being tested under severest of conditions. Most of the invitees were amazed by the performance of the trucks in such conditions, which won their confidence in the products in the offing at DICV.
“Made in India”
The light, medium and heavy duty range of commercial vehicles by BharatBenz will be manufactured at its new plant at Oragadam, near Chennai. Since the financial crisis in 2008, when the company had to realign its plans, every single step has gone as per plan in terms of time, quality and budget. As of today, the manufacturing plant spreads on 400 acres, build-up is almost complete and try-out productions for engines and transmissions have commenced. DICV has a total dedicated investment of over Rs. 4,400 crores. The initial production capacity of the plant is 36,000 units per year, which can be ramped up to a technical capacity of 72.000 units.
DICV has clear and simple plans to be competitive in a cost-efficient market like India. The company has partnered with around 400-450 suppliers in the Indian market, including some of the leading auto component manufacturers. The localisation rate achieved will be 85 per cent in its products, while the target is to overshoot 90 per cent. An interesting fact to be noted here is that 41 per cent of suppliers come from 50 km around the Oragadam plant and 44 per cent from the rest of India, including Maharashtra, Gujarat and Delhi.
Speaking on being cost-competitive, Mr. Llistosella said: ìEither localise or enhance the Indian supplier landscape significantly, or cost-wise there is no chance (to sustain). We have identified 400-450 suppliers, 75% of whom were not known to Daimler till 2008, not known meaning they were not in relation to Daimler. Now we have a totally new landscape of excellent suppliers in India. We have chosen, I think, the best suppliers, and with these suppliers we grow. We see them as partners to grow with us over the next five to twenty years, a long term relationship.
DICV follows an intensive process while identifying potential partners to ensure that all quality requirements are met. Due to close co-operation with its suppliers, the company gained access to the knowledge of the Indian market. 
Mr. Llistosella added: ìWe will localise only when it makes sense, in terms of quality and economy. If this is not the case, we will import. It could come from Thailand, Taiwan, South Korea, even China, when it is quality-wise the best. It should be very cost-competitive but it should be also a BharatBenz, which means it must be much better in terms of quality than what is currently in the market. Itís a promise and a challenge and to make it quality-wise and cost-wise good is a challenge.
Reaching out to customers
BharatBenz is building up its extensive dealership network across India to have about 70 locations on board till the end of this year. It is planning to further extend its activities all over India. As a part of its meticulous dealership strategy, all dealers have been reviewed to meet highest business practices.
ìWe are on schedule with our plans and are geared up for the market launch of our trucks. In addition to a strong dealership network across the country, we also have BharatBenz financial services which is an in-house financial wing which will take care of needs of the customers. We have entered into partnership with leading financial institutions in India, such as HDFC Bank and ICICI Bank, to offer special financing options for BharatBenz customers. On the dealership front, we will continue to expand in a healthy and stabilized manner,î added Mr. V.R.V. Sriprasad, Vice President Marketing, Sales and After Sales, DICV.
Already on board are some of the leading names from the auto and commercial vehicle segment. The company has received 465 applications from Indian dealer companies till date. It would select the best suitable dealer at each location. The dealerships will be single-brand retails dedicated to BharatBenz as part of its aftersales service network.
Plans for the near future
With Benz in its DNA, 4 1/2 years of tailor-made designing for the Indian market, BharatBenz plans to launch 17 to 19 new products in the next 20 months. The first week of March 2012 will witness the premiere of the complete range of BharatBenz vehicles at a show in Hyderabad. The official inauguration of the Oragadam plant will be done in the third week of April this year.
Mr. Sriprasad assertively added: ìThe core is the customers and his needs. We have understood the needs of the customers over the last four to five years, built everything around this brand in order deliver value to the customer. That is where our confidence comes from and not just because we have Benz in the name. We have understood every single nuance of what works for the customer and built it into our products and services.
The company is confident that its 1,150 enthusiastic, dedicated and quality-rich Indian engineers have come out with trucks which are unique to the Indian market and better in key aspects such as performance, fuel efficiency, reliability, service intervals and comfort. The companyís focus is to raise the bar and realise its promise of providing India with a whole new trucking experience. Come 2013, the Indian trucking fraternity will have a trucking experience like never before, one that is bound to make things very interesting in the Indian commercial vehicle space.