Daimler To Shift Truck Plant From Pune To TN

Published: Thursday, April 19, 2012, 13:56 [IST]

Daimler Ag is reportedly planning to move its truck and bus production from Pune in Maharashtra to Tamil Nadu. According to reports the German company which opened a new production facility in Oragadam near Chennai has expressed interest to build the Actros trucks as well as Mercedes-Benz buses in Tamil Nadu.

Both these products are currently built at Daimler's plant in Pune. Daimler is planning to export these trucks to Africa and Asian countries and the location of the plant is crucial to save costs. Oragodam is close to the Chennai plant and this could be the reason behind the decision.

Dieter Zetsche, the chairman of Daimler AG who was present at the inauguration of the Oragadam plant in Tamil Nadu had stated that the Actros trucks would also be build at the plant. Another Mercedes-Benz official has stated that the the company had already begun shifting production of the Mercedes-Benz buses to Tamil Nadu.

Daimler also builds trucks under the brand Name Bharath Benz. The company's decision to move production from Maharashtra could also be to avoid any controversy with regard to VAT payments to the state government. The government of Tamil Nadu is offering some discounts to automakers and Daimler is keen to make full use of them.

Daimler AG's plant in Oragadam has an annual production capacity of 36,000 including heavy and light commercial vehicles.