Daimler conducts feasibility to enter mini truck mkt | Economic Times

MUMBAI: Size does matter - but the smaller the better it might well be for Daimler. The world’s biggest truck-maker that owns the ‘three-pointed star’ and Benz haulers could go hyper-local to feed burgeoning demand from e-commerce companies that have cut down your hypermarket visits to a minimum. So, the German automobile giant is currently undertaking a feasibility study that may possibly result in the maker of Mercedes Benz, Bharat Benz and Freightliner trucks creating a new range of sub-3.5 tonne vehicles that are estimated to have a pan-Asian demand of a million units.“We are studying (the market entry for mini trucks) right now. We are in the very advanced stage of concluding the study, that outcome will show whether we need to enter the space or not,” Satyakam Arya, MD of Daimler India Commercial Vehicles, told ET. “We always keep exploring, which are the segments developing in the country and which segments are interesting to us. That (Mini trucks) is definitely a segment that interests us.”To be sure, the small commercial vehicle segment including pickup trucks accounts for almost half of the Indian commercial vehicle space, while Daimler is the world’s largest truck maker in the 15 tonne to 60 tonner segment. The results of this feasibility study is likely to be out within a quarter, and if the findings are positive, Daimler will take on the likes of Tata Ace, Ashok Leyland Dost and Mahindra Jeeto with its own range of trucks in India and also serve a growing global market.At Your DoorstepInterestingly, the last-mile trucking space has been the fastest to revive post-Covid and it allows the truck makers to de-risk themselves from cyclical medium and heavy truck business. In a market that declined close to 30 % in FY-20, the shrinkage in small commercial vehicle space (0-3.5 tonne) was lower at 22%. This financial year, too, the decline in small commercial vehicles is much lower than in the mainstream truck markets.If the company decides to go ahead with its plan, it will call for fresh investment into the vehicle architecture as well as a new manufacturing plant.“We will have to start from scratch. If we conclude in favour, India will be the biggest opportunity and it will serve the global markets,” explained Arya.For the HQ, India apart from a key exports hub it is also an important development hub for the global operations. For the electric Canter trucks sold in Europe, the US and Japan, the entire chassis frame and the battery were designed and developed by the Indian team. Daimler India Commercial Vehicle is likely to announce its future mobility plans in India in the coming quarter of which electrification is likely to be a key pillar. Arya believes an electric powertrain for mini trucks is the ideal segment to start the electrification strategy. “We are already working on the electrification plans for India. For a cost effective solution on e-mobility, India will be the front runner in the world,” Arya said.Gaurav Vangaal, associate director at IHS Markit, said that with the rising demand for last-mile connectivity, the small commercial vehicles can meet the business case for electrification.“Going by their sure-footed, grounds-up approach with BharatBenz on the bigger truck space, one expects Daimler to be a solid player in the small commercial vehicle space. With an aggressive global plan on electrification, the company can carve a space for itself in the highly competitive market space and electrification may actually turn into a differentiator - just as petrol is for Maruti Suzuki,” added Vangaal.