Daimler India drives in first profit in four years on volume push

Four years after calling itself financially 'sick', Daimler India Commercial Vehicles (DICV), reported its first profit during the calendar year 2018. Though the company did not disclose its profit figures, its sales volume grew by 35% in 2018 as against the previous calender year.

Owing to a massive slowdown in truck sales, Daimler's India unit saw an erosion of its net worth in the year 2014. The company had reportedly even approached the Bureau for Industrial and Financial Reconstruction (BIFR) in this regard.

According to the 2018 sales data released by DICV, the company sold 22,532 trucks in the domestic market, making India its fifth largest individual market in the world after the US, Indonesia, Japan and Germany. The company's exports also increased by 8% to 7,054 trucks from 6,553 units in 2017.

Satyakam Arya, managing director & CEO, DICV said that the company's sales and service network grew from more than 130 to over 180 touch points in the course of the year.

The development comes at a time when the commercial vehicle (CV) industry in India seems to have slowed down in past few months. Industry observers claim that slowing industrial output, liquidity crisis, change in axle norms and higher rates of interest continue to impact the CV industry sales volume.

TURNING AROUND

• Owing to a massive slowdown in truck sales, Daimler’s India unit saw an erosion of its net worth in 2014 
   
• Daimler’s exports increased by 8% to 7,054 trucks in 2018