Daimler's 9-seater Viano to hit the roads in Sept-Oct

DaimlerChrysler India plans to launch its 9-seater light commercial vehicle Viano in September-October. Daimler officials said the vehicle would fulfill the luxury requirements of corporates, resorts and hotels.

Viano is priced between Rs 23 to 25 lakh (Rs 2.3-Rs 2.5 million) for EPCG (Export Promotion Capital Goods)-eligible customers, while for others it will cost around Rs 40 lakh (Rs 4 million).

Company officials, blaming import duties for the high cost, said, "As the LCV will be imported from our Spain facility in CBU (completely built unit) form, it will attract an import duty of 60 per cent."

Hans-Michael Huber, CEO and managing director, DaimlerChrysler India, said customers in the resorts and hotels industry had underscored the need for such a luxury van.

Huber said DaimlerChrysler will hold concept shows and demonstrate the product to prospective customers across the country. However, he did not elaborate on the potential demand for the vehicle.

Meanwhile the company is on course to cross the Rs 500 crore (Rs 5 billion) turnover this year, backed by sales of 1,800 units, which is an over 15 per cent growth in volume and sales over the previous year. Last fiscal the company revenues of Rs 430 crore (Rs 4.3 billion) through sales of 1,580 vehicles.

Huber said the D segment saw strong growth -- between 20 to 25 per cent in the first half -- while the premium D segment that it dominates grew between 15 to 20 per cent.

Coming in the wake of a 30 per cent growth last fiscal, Huber said, this growth rate points to the promising quarters ahead.

He added the company will sell 120 S class cars, up from 80 last year, and 800 E and C class cars apart from 100 CBU models.

Meanwhile, the company has decided to increase outsourcing of components and information technology solutions from India to $100 million this fiscal, up 18 per cent over last year. Last fiscal, the company had sourced components and software worth $85 million from India.

Senior officials said a third of all sourcing the company does was in information technology-related and this was increasing. The company, through its research and technology group in Bangalore, runs alliances with 10 IT majors in India.

Besides, its 100-seat centre in Bangalore also carries out dedicated research for DaimlerChrysler's global operations.

DaimlerChrysler has three research centres outside Germany. While the Japan centre maps and forecasts technology trends, the Indian centre focuses on IT solutions. The third centre in China concentrates on component testing and development. Officials said as part of a global sourcing strategy, the company has more than 20 joint ventures to manufacture and export auto components and software to its plants across the world.

Till date, cumulative auto component exports from India have amounted to $167 million.

While officials were bullish on increased sourcing from India, they said the competition was not between Indian and European firms, but between India, China, Latin America and East Europe.

They said, firms in these countries now boast the same USP of low cost but high quality.