Daimler Truck inaugurates new manufacturing plant in Indonesia

Daimler Truck inaugurates new manufacturing plant in Indonesia

Daimler Truck has marked a significant milestone in its regional expansion
with the opening of Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI)—a cutting-edge greenfield manufacturing facility located in the Cikarang Industrial Area,
Indonesia. This strategic investment underscores Daimler Truck’s long-term
commitment to Southeast Asia, tailored to meet the region’s dynamic and evolving
mobility needs.

The new DCVMI plant spans 15 hectares and has an annual production capacity of
5,000 Mercedes-Benz trucks and buses. With a total investment of IDR 500 billion, this
facility embodies Daimler Truck’s commitment towards strengthening the commercial
vehicle industry in Indonesia and serves as a cornerstone of the company’s regional
growth strategy—acting as a hub for vehicle assembly and distribution across key
Southeast Asian markets. What sets this initiative apart is its collaborative foundation,
rooted in the precision of German engineering, the strength of Indian manufacturing,
and the insight of Indonesian market experience.

India plays a pivotal role in this regional synergy. The new Indonesian facility will be
seamlessly supported by Daimler India Commercial Vehicles (DICV), based in Chennai,
which will supply high-quality Completely Knocked Down (CKD) kits. DICV’s proven
excellence in cost-efficient, world-class manufacturing ensures operational efficiency
and supply chain resilience, while optimizing localisation and scalability.

Satyakam Arya, Managing Director and CEO, Daimler India Commercial
Vehicles, emphasized the plant’s significance as part of Daimler Truck’s long-term
strategy in Southeast Asia. “India remains a cornerstone of our global export strategy.
Leveraging Indonesia for the ASEAN region is about expanding our reach, not shifting
our focus. As DICV becomes further integrated into Daimler Trucks’ global
manufacturing network, we will play a key role in building capabilities in Indonesia—transferring knowledge, developing talent, and strengthening the regional
ecosystem.”

The opening of DCVMI’s new factory is a concrete realisation of the “Bigger and Better”
vision. More than just expanding the scale of its facilities, this step also brings
improvements in agility, improved workflow, and the resilience of solutions for customers in Indonesia. This initiative affirms the company’s commitment to providing commercial vehicles that truly meet local market needs, from production efficiency and service reliability to the ongoing adoption of innovation. The collaboration between Daimler’s global technology and the strength of the local Indonesian team serves as a solid foundation, ensuring that every product supports the business growth of customers throughout Indonesia.

“The integration of India’s advanced manufacturing capabilities into our Southeast Asian operations highlights our unified global approach,” Satyakam said.”By combining
German engineering excellence with India’s production strength and deep Indonesian
market understanding, we are creating a robust platform for long-term success in the
region,” he added.

The plant will continue producing flagship models such as the Mercedes-Benz Axor
Trucks: 2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, and 2528 C, as well as
Mercedes-Benz bus chassis: OH 1626 L and OH 1626 S, specifically designed for the
Indonesian market.

Sankaranarayanan Ramamurthi, President Director of DCVMI, stated that the inauguration of the plant marks a new growth phase for DCVMI in Indonesia. “This plant is not merely an addition to our infrastructure—it is a manifestation of our vision to make a tangible contribution to Indonesia’s economy, empower local communities, and build a stronger industrial ecosystem. Each unit produced here reflects not only engineering excellence but also the spirit of collaboration and our confidence in Indonesia’s future. We are committed to continually creating job opportunities, innovating, and contributing to growth in and for Indonesia,” he explained.

DCVMI’s new plant in Cikarang adopts an integrated manufacturing system under one
roof, enabling more efficient and streamlined production processes. It is equipped with a test track to simulate various road conditions and an advanced paint booth to enhance
paint quality, all aligned with Mercedes-Benz’s global manufacturing standards.
This tri-nation collaboration not only strengthens Daimler Truck’s footprint in Asia but
also enables faster innovation cycles, increased flexibility, and a sharper customer focus—delivering vehicles that meet local demands with global standards of quality and
performance.

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