DaimlerChrysler to assemble trucks in India soon

28 June 2007

Consent from the Indian partner is mandatory for companies to start operations on their own in the country where the demand to transport freight is growing.

"This is a common procedure necessary if a foreign company with an equity stake greater than 3 per cent in a domestic company would like to start its own operations," Wilfried Aulbur, chief executive of DaimlerChrysler India, said in a statement.

"DaimlerChrysler plans not only to import complete vehicles, but to assemble semi-knocked down Mercedes-Benz trucks in India in the near future," he said.

Daimler imports the Actros range of heavy trucks and is setting up a plant in Maharashtra with a capacity to make 5,000 luxury Mercedes cars a year.

The plant would also be used to make trucks, a spokesman said, adding that the range and capacity have not been finalised.

India''s bus and truck market, the world''s fifth-largest by volume, is growing quickly as better roads and a focus on infrastructure are boosting demand for transport of freight.