As the Oragadam facility is running at full capacity, German truck and bus manufacturer Daimler India Commercial Vehicles (DICV) plans to ramp up manufacturing capacity in two stages, according to MD & CEO Satyakam Arya.
During a conversation, he stated, “Right now, both production lines are functioning in two shifts at 100% capacity. In comparison to the installed yearly capacity of 72,000 units, he continued, “we are producing 36,000 vehicles per annum.”
Debottlenecking the production process and stepping up supply chain will enhance production capacity over the coming months by 39% to 50,000 units. According to Arya, there won’t be any significant capital expenditures as a result of this.
“The enhanced capacity will be sufficient for us until 2025. Thereafter, we will take a call depending on the market growth rate,” he said.
However, Arya was cautious in his forecast as he expects the market demand for trucks and buses in 2024 either to be flat or decrease slightly as it is an election year.
During CY2022, DICV posted 37% growth in revenue and 25% in sales volumes.
