Daimler India has signed a second Memorandum of Understanding (MoU) with the Tamil Nadu Government, covering an investment of Rs. 2,277 crore to expand commercial vehicle production at its Oragadam plant.
Daimler India Commercial Vehicles (DICV) have signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government, covering an investment of ₹ 2,277 crore to expand commercial vehicle production at its Oragadam plant. This the second MoU signed by the commercial vehicle manufactures with the Tamil Nadu state government, and Daimler says that the investment will lead to creation of approximately 400 jobs. The company has said that this additional investment is in line with DICV’s long-term commitment to the Indian market.
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Talking about signing the MoU and new investment plan, Satyakam Arya, MD & CEO of Daimler India Commercial Vehicles said, “This is the second MoU that DICV has signed with the Government of Tamil Nadu. It demonstrates our unshakeable confidence in the long-term potential of India as a market for commercial vehicles and our ongoing commitment to the country as a whole.”
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Daimler India Commercial Vehicles came into existence as a fully owned subsidiary of Germany’s Daimler AG in 2009. The company had four strategic targets: serve the strategic Indian growth market for commercial vehicles, leverage its potential as an exports base, develop its sourcing potentials for Daimler globally, and leverage specific competencies to provide shared services to the Daimler Group.
In 2012, the company started selling BharatBenz trucks in India, and in eight years sold one lakh medium and heavy-duty trucks in the country. In 2015, the company started selling BharatBenz buses in India and as of 2020, the company has sold 4,500 units. Furthermore, since 2012, Daimler India has exported more than 30,000 vehicles under the brands BharatBenz, Mercedes-Benz, Freightliner and FUSO to more than 50 markets around the globe. Moreover, the company has exported 130 million parts to other plants within the production network of Daimler Trucks since 2014.