Daimler Buses India A greenfield approach AKJ Automotive India 2016,18 th October 2016 Markus Villinger
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1 Daimler Buses India A greenfield approach AKJ Automotive India 2016,18 th October 2016 Markus Villinger
2 The Daimler AG portfolio - the five pillars of success Note: 2015 Revenue Group 149,467 m, Employees: 284,015, thereof Others 9,922 Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 2
3 Daimler Buses - globally present Our production sites are present all over the world Daimler Buses Mexico Daimler Buses North America Daimler Buses Latin America EvoBus Group Mercedes- Benz Türk Daimler Buses India Daimler Entities Bus Indonesia Australia South Africa Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 3
4 Promising growth story of Indian bus market with increasing modernization brings Daimler Buses to India Bus Industry Markets: >8t Price Level Today Future High Premium Market Premium Market Semi Premium Market Semi Premium Market Medium Modern Market Move towards the next generation Modern Market Mass Market Mass Market Low The Indian bus industry is set to advance from satisfying basic transportation needs towards modernization coupled with intensified competition Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 4
5 Daimler Buses India set up under the umbrella of DICV, making DICV a complete CV manufacturer in India DICV 22 BharatBenz trucks launched in India since 2012 Exporting 24 variants to over 20 markets under the FUSO brand CV portfolio expanded with BharatBenz buses and a Mercedes-Benz coach Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 5
6 A range of modern trucks from 9t to 49t delivering best value for money, driving the change Medium Duty Heavy Duty 9 Ton 12 Ton 15 Ton 16 Ton 25 Ton 31 Ton 40 Ton 49 Ton 4 cylinder 80kW ~ 125kW Fuel efficient for last mile distribution 6 cylinder 170kW ~ 205kW Long service intervals reduce service cost Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 6
7 Range of BharatBenz and Mercedes-Benz buses launched in 2015 to cater to growing Indian Bus market State-of-the-art full-fledged bus manufacturing plant in Chennai Pan-India sales of fully built buses & export of bus chassis Investment: 425 crores Area: 28 Acres Capacity : Upto 4000 u Product Range: 9t, 16t, 24t Brands: Daimler Trucks Asia Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 7
8 Trucks India milestones (1/2) DICV incorporated State-of-art test track ready Unveil of brand Plant Inaugural MDT Launch India Commercial Vehicles Pvt. Ltd. Setting up R&D and FC systems Trucks tested successfully Awarding of Wave 1 dealers BharatBenz Premiere Start of exports Incorporation of MB Actros First engine & transmission assembled on the production Mr. Kasturilal Wasan of Wasan Group, Mumbai line 29 th Mar 11 HDT launch DTA strategy roll-out Daimler Trucks Asia Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 8
9 Trucks India milestones (2/2) CV Maker of the Year Bus plant foundation laid Crossed 10,000 units sale Bus chassis exported to Egypt Nepal market launch FUSO launch South America TT and CM market launch 10,000 th truck rolled out First FUSO LHD rolled out DICV wins tractor of the year Crossed 30,000 units sales Second wave of products TS16949 QMS certification 1,000 trucks sold Thunderbolt concept at IAA Start of bus production Export of mixers to Thailand Major Fedex order delivered Daimler Trucks Asia Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 9
10 Bus India Milestones Setup of a greenfield business 2012 Start of Bus DICV 2013 Streamlining bus business under the roof of DICV 2014 Groundbreaking bus factory 2015 Plant Inauguration and SoP Realignment of Business Plan Co-operation Agreement with body builder Shipment of 1 st order to Egypt Product Preview Preparation of transition of operational business to DICV Completion of first complete bus prototype Start of bus bodybuilding at DICV Start of sales of first products through dealers Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 10
11 State-of-the-art testing facility with in-house test track Additional testing across locations worldwide Testing snapshots: DICV Test track Testing snapshots: DICV Test track Testing snapshots: DICV Test track DICV Test track Testing snapshots: South Africa Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 11
12 Investment of INR 4,400 crore, establishing a new commercial vehicles company that is covering the entire value chain Product Supplier Plant Network Organization 9t~49t Full Range Trucks developed in India for India 90% Localization Full supply chain with over 400 suppliers Over 1.5 mio sq ft Production facility for power train and truck assembly Pan India Network established in a phased approach 3,000 Jobs. Complete truck organization with best Indian talent Delhi Rajkot Mumbai Pithampur Pune Hospet Hosur Coimbatore Chennai Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 12
13 A strong and committed supplier base in India was crucial to our localization strategy Synergies maximized from already existing trucks supplier base Close cooperation with a solid and strong partner Transparent supplier selection process and decisions Chance to participate in a sustainable business model Long-Term collaboration Growth opportunity for suppliers chance to compete for worldwide Daimler Trucks and Buses business Daimler Buses India * For the year 2016 Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 13
14 Long term partnership with suppliers showing exemplary performance in cost, quality and delivery is key Strategic Partners Daimler Supplier Network Our Expectations from Suppliers: Benchmark in Cost and Performance Key Suppliers Transparency to Daimler confidential to other Adequate capacity Professional project management Suppliers Disciplined change management Integrity & Compliance Potential Suppliers Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 14
15 Trucks India Consolidation Center exports 205 parts into Daimler Network Major parts exported from Consolidation Center India Tappet Synchronizer Flasher Relay Crankshaft Gear Trans Housing Flywheel Get Full Power- Engine Re-Man project Crankshaft Gear BCC - Vehicle Get Full Power- Engine GMDT BR 900 Timing Case 300 Oku Camshaft Gears Steering wheel Push rod King pin Get Full Power- Engine Projects under proposal Projects implemented Horn Pad Washer tank Lightning Windshield Horn Bearing Rocker shaft Drag link Charge air pipe Back plate assembly Daimler Trucks Asia Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 15
16 Trucks India exports vehicles to12 countries, to be extended to 30 countries by end of 2016 Dom. Republic Jordan Qatar Nepal Trinidad UAE Panama Launched in 2015 Launch in 2016 Thailand Nigeria South Africa Daimler Trucks Asia MENA (Vol. Est: 360u) Bahrain Q2 Africa (Vol. Est: 100u) Market Launch Countries 2016 Sudan Q2 Mozambique Q4 Malawi Q4 Latina (Vol. Est: 300u) Existing GCC Variants Gen. Export Variants Existing Latina Variants Kuwait Q2 Chile Q3 Peru Q2 Saudi Arabia Q3 Colombia Q2 Costa Rica Q3 El Salvador Q3 Honduras Q3 Nicaragua Q3 Paraguay Q3 ASIA/ASEAN/OCEANIA (Vol. Est: 250u) Myanmar Q3 Philippines Q3 Australia* Q4 New Zealand# Q4 Cambodia Oman Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 16
17 Bus chassis exports to 9 countries running already Beginning of complete bus exports to Middle East Based on DICV 9t chassis Complete bus from DICV School bus Egypt School Bus Middle East Tourist bus Indonesia Tourist Bus Nepal Tourist bus South Africa Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 17
18 Thank you for your attention! Looking forward to your questions Daimler Buses India Daimler Buses India A greenfield approach/ AKJ Automotive Congress/ Oct 2016 Page 18
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