India is strategically important for cost competitiveness with R&D, manufacturing and logistics
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Hannibal Hanschke
German auto major Daimler Truck is increasing its focus on India not only for export of its vehicles but also plans to use the country as a major sourcing destination and for developing new products.
The commercial vehicles major also expects the India-EU trade agreement to boost exports from the country.
“One concrete example is that, although a new segmentation was only formed earlier this year, the company plans to develop a medium-duty driver cabin with a single team in India. Previously, this cabin would have been developed separately in Germany, Brazil and India,” said Achim Puchert, Member of the Board of Management, responsible for Mercedes-Benz Trucks and BharatBenz.
“In the future, we will also produce that cabin in two plants only instead of three. This is one example of our new speed of execution. We identify and immediately act on opportunities coming from our new global scope,” he said at the company’s Capital Market Day 2025, in Charlotte, North Carolina, US on Tuesday.
Manufacturing footprint
“In India, as a new region, we will leverage our manufacturing footprint, as well as logistics and supply chain components for scale and cost efficiency… India provides a huge scale and cost reduction potential. It is strategically important for cost competitiveness with R&D, manufacturing and logistics,” he said.
Daimler India Commercial Vehicles has been in business for 13 years and in that short period of time, the team has produced more than 250,000 trucks and buses, which are sold within India and exported to more than 60 countries.
Eva Scherer – CFO & Member of the Board of Management, said India represents a strategic long-term opportunity.
“There, we are leveraging domestic volume to build a foundation for profitable export growth. While still early, the potential EU-India trade agreement could accelerate this opportunity for us,” she added.
Karin Rådström – President & CEO, Daimler Truck Holding AG, said, “India is one of the high impact opportunities. Local scale opens export opportunities with a target of over 60,000 units by 2030.”
Published on July 8, 2025