German auto major Daimler’s Indian arm Daimler India Commercial Vehicle (DICV) is exploring new areas such as defence vehicles, off-highway engines, LCVs among others to address future cyclical challenges in the domestic commercial vehicle industry.
Satyakam Arya, managing director and CEO, DICV said that beyond trucks, the company want to promote innovation culture, new business ideas and revenue streams.
While exploring venturing into allied space including defence, off-highway engine manufacturing, LCVs among others, for innovations, the company said it is ready to fund, mentor and collaborate with education institutes and freight aggregators.
The diversification is also part of company’s derisking strategy and to enhance the revenue, said Arya.
In 2019, DICV clocked around Rs 6,300 crore revenue, which is 10-12 per cent increase compared to 2018.
Speaking about defence foray, he said at present Government policy doesn’t support foreign companies to supply for defence purpose, but recently the government has indicated it may relax the policy by April to enable companies like Daimler to participate. Today this segment is dominated by Indian companies including Tata, Ashok Leyland and Mahindra.
For defence segment DICV