Daimler's India CV arm signs new MoU with Tamil Nadu govt1 min read . Updated: 28 May 2020, 11:18 PM IST
Fresh investment aimed at expansion of its Oragadam (Chennai) plant will create additional 400 jobs, DICV said
Daimler India Commercial Vehicles Pvt Ltd (DICV) has signed a new memorandum of understanding (MoU) with the government of Tamil Nadu within which the manufacturer will invest ₹2,277 crore to expand it's production capacity, the company said in a statement on Thursday.
Fresh investment aimed at expansion of its Oragadam (Chennai) plant will create additional 400 jobs, DICV said.
"This is the second MoU that DICV has signed with the government of Tamil Nadu. It demonstrates our unshakeable confidence in the long-term potential of India as a market for commercial vehicles (CVs), and our ongoing commitment to the country as a whole," said Satyakam Arya, managing director and chief executive officer at DICV.
The company, however, did not disclose the timeline of the planned capacity expansion under the second MoU.
The company, a wholly-owned subsidiary of Germany vehicle manufacturer Daimler AG, was established in 2009 with the intent of not only serve India's growing CV market but also to leverage it's potential as a manufacturing hub for export markets as well as sourcing parts for Daimler globally.
Daimler's local CV arm, which had launched it's brand BharatBenz in 2012, has already invested ₹5,500 crore so far. The company said it has cumulatively sold more than 100,000 units of locally manufactured trucks and buses in the domestic as well as the export markets.
"DICV has already exported more than 30,000 vehicles and 125 million parts," the company said in a note.
Earlier this month, resuming operations at its 400 acre plant in Chennai, the company said while it would ramp up production in a phased manner, it has been tracking the health parameters of more than 4,000 of it's employees.