Daimler India Commercial Vehicles (DICV), on Thursday, indicated that it would aim to achieve operational break-even by the end of 2015 as well as target to more than triple its current volumes in a shorter period.
The truck and bus manufacturing arm of German auto major Daimler AG has worked out a three-pronged strategy to report operational break even. Firstly, it plans to be more cost-competitive by increasing localisation levels in its trucks further to about 95 per cent from 85 per cent now. Secondly, the company would aggressively work on boosting volumes and market share despite tough market conditions and thirdly, stronger export thrust would be given as long as the currency fluctuates favourably.
“We have ambitious 3-year plan to achieve operating break even for DICV. We hope to reach this level by the last quarter of 2015,” Marc Llistosella, Managing Director & CEO of DICV said here.
With the highest ever monthly sales of about 1,000 trucks in March this year, DICV’s cumulative sales of BharatBenz trucks, sale of which began in September 2012, crossed 10,000 units. DICV sold 2,203 units in January-March 2014 period as against 1,316 units in a year-ago period and claimed to have garnered a market share of 5.3 per cent in the addressable medium and heavy duty truck market (above 9-tonne category).
Mr.Llistosella hinted that company had drawn up plans to reach 30,000 sales mark in a shorter period. Its current annual capacity is 36,000 units on two-shift basis. In 2013, DICV produced 6900 trucks out of its Oragadam facility near Chennai and sold 94 per cent of production in the domestic market while the rest were exported.
Source:- thehindu.com
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