Daimler might tie up with Renault-Nissan to manufacture commercial vehicles like mini pick up trucks
Daimler Commercial Vehicles is bullish on the Indian market even as it has launched a range of heavy duty trucks targeting inte-city fleet operators. The German brand does have ambitions of entering the other segments of the Indian commercial vehicle market like the mini pick up segment, a market that has been growing at a rate of 20%, making it an extremely attractive proposition for all the CV makers in India. Daimler does have ambitions of launching a mini pick up truckin the Indian market a few years down the line and for this, the brand may partner Renault-Nissan.
Daimler already does have an alliance with Renault-Nissan in many global markets, to develop and sell commercial vehicles developed by both Renault and Mercedes Benz. This strategy was adopted in order to save development costs and also to improve sales of both the brands by entering new markets. For India too, this co-operation could be carried further, especially in the mini pick up truck segment. Nissan already has an alliance with Ashok Leyland and this joint effort spawned the Ashok Leyland Dost 1.25 ton mini pick up truck.
Partnering Nissan, Daimler could come up with a mini pick up truck for India that is both cost effective as well as well engineered, to take on the segment leading Tata Ace, which continues to outsell all other mini pick up trucks in India. That said, Daimler currently does not have any plans on partnering Renault-Nissan in the Indian market as the automaker would first want to focus on the heavy commercial vehicle(HCV) segment, where it plans to give market leader a run for its money by pricing the Bharat Benz products attractively. In the future though, Daimler chairman Dieter Zetsche, has indicated that a tie up with Renault-Nissan is a possibility.
Coming to the mini pick up segment in India, this segment didn’t even exist before Tata Motors launched the hugely successful Ace mini pick up truck. Even as the Ace continues to be a market leader, a range of automakers, from Mahindra and Piaggio to Hindustan Motors and Ashok Leyland have entered this lucrative segment. Mini pick up trucks are now the vital in India’s last mile connectivity logistics as these vehicles’ small size means that they can reach places where conventional trucks will simply not ply. So, this segment has been witnessing big growth in the past few years with the Tata Ace leading the brigade.