Bharat Benz 2523

Bharat Benz started its commercial operations during the year 2013. Intensive planning and engagement of customers during the development, resulted in a fantastic opening for the company. This was the first aspiration commercial vehicle brand, in the value segment, so far Indian commercial vehicle industry has seen.  The company crossed sales of 10 thousand trucks milestone in just 18 months of operation in India. Sales grew over 64% YoY in the first year of launch making it a clear winner. All this were happening when every other manufacturers were bleeding with reduced sales due to weak economy. By Dec 2014 the company manufactured 20000 trucks and declared it has acquired close to 5.3% in the medium and heavy duty segment in less than 2 years of operation.

Bharat Benz
Bharat Benz

The company currently  company has so far sold 49,000 units made at the Oragadam plant, including exports of 7,000 units, over four years. Company is right now under pressure to maintain its momentum what it has gained over past. Primarily because of the changing Govt. policies. Though the company started Q1 of this fiscal with a 26 per cent rise in sales, uncertainty impacted the Q2 performance. Sales contracted about 0.3 per cent for DICV in the two quarters put together. The second quarter was not good as the Indian government announced GST without naming the number (rate of GST) and the date when it takes effect. This has caused risks and uncertainty in marketplace and buyers are postponing their decisions.

With this scenario DICV is aiming to achieve break-even by the third quarter of 2017, said its CEO and Managing Director, Erich Nesselhauf. This will be further aided by new range of products that the company will be adding shortly in the 6T to 9T segment.

By CV News

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