Tuesday, January 28, 2020

Bharat Benz rides on BS-VI line-up for higher market share.




Daimler India Commercial Vehicles (DICV) which sells trucks and buses under the Bharat Benz brand expects the current year to be a decisive one for the company. At present DICV is having tough competition with Tata Motors and Ashok Leyland with bits BS-VI line of vehicles.

 It is looking forward to expand its service from the current 237 to 300 by this year end and beyond 350 by end of 2021.According to the reports from the CEO of DICV “There was a strong growth in 2018, then the market  took a U-turn in 2019. They restructured the entire company in terms of cost and made it much more feasible. They also shifted their focus on export activities. As a result of that, the company is now in much better position on financial basis. He also added that the latest range of BS-VI models the company will introduce in the current year will give them some dominance over their rivals in India".

DICV doesn’t report monthly sales volumes. The company’s calendar year volumes are estimated to have dropped to 14,500 units in 2019 from 22,000 units in 2018.

Bharat Benz truck have up to six year standard warranty and an extended warranty of up to eight years. The trucks will have service intervals up to 20 percent longer. This will reduce maintenance cost by up to six percent. The main and most important differentiator in technology will be the after beneficiary systems used in vehicles. Sales of medium and heavy trucks fell 43.5 percent year-on-year to 146,780 units in the first nine months of the year according to the records of Society of Indian Automobile Manufacturers (Siam).


As all the automobile industries are required to follow the BS-VI emission norms from April 1. The new emission norms are expected to make the BS-VI trucks at least 10-15 percent compared to BS-IV models. DCIV invested close to Rs500 crore and developed new facilities and over 1,000 new parts for BS-VI. Bharat Benz claims that unlike its competitors, the company doesn’t believe in discounting or panic selling. The value of truck owners will get by investing in Bharat Benz BS-VI models will be higher than that of a BS-VI variant of other tucks. Unlike most other trucks Bharat Benz models do not compromise on fuel efficiency because of transition to BS-VI. The expects 2020 to be a tough year as the impact of the axle norms , which allows a 16-49 tonne truck to carry 25 per cent more load , has not been adsorbed yet. Various calculations show that if India’s GDP grows at 7 percent, DICV will take three years to adsorb the additional capacity.


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