September 25, 2020

DICV can climate the disaster partly due to 90% localization of provider community: Satyakam Arya



CHENNAI: Daimler India Business Automobiles (DICV) is seeking to additional enhance their localization ranges from the 90% that that they had achieved previously to assist handle their provide chains higher within the Covid situation, Satyakam Arya, MD & CEO, DICV stated.

“DICV is uniquely positioned to climate the disaster partly because of the sturdy backing of the worldwide Daimler group, but additionally because of the roughly 90% localization of its provider community which permits us to be much less reliant on worldwide provide chains,” he stated.

He added that the Oragadam plant is performing at 100% capability in a single shift operation with all social distancing norms being adhered to.

“Most of our white collar staff nonetheless proceed to make money working from home and we’ll resolve them to deliver to workplaces wanting on the scenario in Chennai. The previous couple of months have given us the chance to be taught to be productive whereas working from dwelling and we wish to embrace this studying in future in a better method. In actual fact, wanting on the optimistic acceptance of our BSVI product vary, we’re contemplating so as to add a second shift in our manufacturing as demand ramps up,” he stated.

Additional, he stated that from Could onwards the corporate has re-started exports and has accomplished all pending orders which had been gathered because of the lockdown in India in March and April.

Satyakam stated that the CV market is intently linked to the financial exercise and that till it improves, there shall be a restricted demand for motion of freight. Nonetheless, he stated that the financial stimulus package deal supplied by authorities will assist to deliver revival of demand in building and mining segments. Additional, he stated the scrappage coverage might enhance this image if that coverage is designed to set off recent demand, which suggests setting automobiles greater than 15 years’ outdated as candidates for scrapping, and bringing in appropriate incentives.

“We already see some optimistic traction in these segments. Additional, we see E-commerce section gaining momentum since persons are switching extra to on-line shopping for for important items and even for restricted discretionary spending because of the pandemic. This may even enhance volumes in small and light-weight business automobiles because of elevated demand for final mile supply of products,” he stated.

With public transport being suspended, he stated the demand for buses might stay restricted in segments catering to high school, universities and corporates until the time training continues to get delivered on line and corporates make money working from home. However he added that when the Covid scenario improves, there might be a spurt of demand from these segments since social distancing must be utilized and greater fleet measurement can be wanted to move the identical quantity of individuals as earlier than.

Talking in regards to the pandemic, he stated Covid-19 has supplied the corporate with an opportunity to give attention to new methods of connecting with stakeholders.

“Till now, manufacturing was considered a 100% hands-on enterprise. Now we see that it’s potential for us to digitalize extra processes and duties than we ever thought potential. We join with our staff, suppliers, sellers and clients nearly, commonly and comprehensively to handle our worth chain,” he stated.

DICV has managed the transition from BSIV to BSVI with zero unsold inventory of vehicles and buses by finish of March of their whole worth chain. It additionally produced its 1000th BSVI-compliant HDT, which was certainly one of over 1500 BSVI automobiles manufactured regardless of the lockdown in Tamil Nadu.

“We’re fairly properly ready with our BSVI product vary and are ramping up our manufacturing quick regardless of all Covid-related challenges. In actual fact, DICV just lately celebrated the sale of its 100,000th BharatBenz truck in India which is a report achievement in solely eight years because the model was launched. DICV has additionally exported over 30,000 vehicles and buses to greater than 50 markets worldwide. Over and above, we now have cumulatively exported greater than 125 million components to numerous vegetation of Daimler, thereby serving to our provider companions in India with extra enterprise; a real instance of ‘Vocal for Native’.”