Daimler Truck and Cummins to cooperate
In what is considered as a departure from the traditional way of doing business, Daimler Truck AG has inked a deal with Cummins Inc.
however, remove end-of-life vehicles plying on road and create demand for new vehicles that are less polluting, safe and efficient.
Q. What would be the effect of steadily rising fuel prices and other prices, including road toll tax on CV industry growth?
A. Higher fuel prices and road toll taxes are straining fleet owners and leading to higher cost of operations. With best-in-class fuel efficiency, safety and comfort, reliability, maintenance cost and connectivity of BharatBenz trucks, DICV is helping its customers to optimize their operations and run them more efficiently. The economic revival and necessity to transport more goods domestically and outside the country in 2021 should lead to the return of demand for M&HCVs.
Q. With M&HCV segment showing slow signs of growth, is DICV looking at new segments?
A. Green shoots can be seen in the economy that indicate the worst is over when it comes to market demand. We expect the Indian M&HCV segment to register non-linear growth in 2021, up 50 to 80 per cent compared to 2020, before returning to a linear growth rate in 2022. We are continually looking at market needs and industry trends. In-line with that, we are adjusting our portfolio.
Q. How do you look at the emerging vaccine transportation segment? Will it grow faster than the e-commerce segment?
A. Trucking will play a crucial role in vaccine transportation across India. The biggest challenge faced by the government is seamless and safe transportation of vaccines via an adequate number of advanced reefer trucks. We expect good demand for vaccine trucks in the second round of vaccination. With an estimated increase in demand of over 10,000 specialized trucks needed for the vaccine to be transported across the country - and a strong export opportunity as neighbouring countries rush to vaccinate as well – we are positive about growing demand for vaccine-carrier reefer trucks. The National Centre for Cold-chain Development has said that India needs 30,000 new pack-houses with pre-cooling facilities and 60,000 refrigerated trucks.
Q. Who did you collaborate with the tanker superstructure?
A. We have many authorised body-builders that we collaborate with in different parts of the country. We work with them on the basis that they should be able to meet the various customer requirements towards customisation and others.
Q. How has been the progress of the used CV business that you entered in 2020?
A. The business has picked up well and providing DICV a sizeable chunk of its monthly sales. Offering customers the chance to trade in their vehicles of any brand for a BharatBenz, the BharatBenz Exchange programme has been very popular.
Q. DICV was to announce an alternate fuel roadmap by the end of 2020. Will it do so this year?
A. HWe are currently working on a ‘Future Mobility’ roadmap that will address this and many other forward-looking topics. This will be presented in the coming months.
Q. How do you think the decision to hive-off the trucks business by Daimler Group will influence the Indian operations as its Asian manufacturing hub?
A. The announcement by Daimler AG is welcomed by Daimler India Commercial Vehicles (DICV). It will help Daimler Trucks become faster, more agile, and more focused. It will be easier to find new partners and forge new cooperation pacts to tackle the manifold challenges of transformation. The development would help leverage scale in the truck industry, to raise returns, and to fulfil customer needs.
“Higher fuel prices and road toll taxes are straining fleet owners and leading to higher cost of operations.”