One of China`s largest CV maker, BeiBen is looking to launch its trucks in the Indian market. This is the third big Chinese company which will enter India after Beiqi Foton and Jianghuai Automobile Co Ltd (JAC) to eye the growing commercial vehicles market. You can read about our report on JAC here.
BeiBen, established in 1988, took hold in the Chinese market after its JV with Mercedes Benz many years ago. The company portfolio includes heavy duty trucks and tippers, made in conjunction with technologies from Mercedes. Reliability of their trucks made them the favored choice for customers. BeiBen is one of the companies owned by the Norinco Group which belongs to Inner Mongolia.
BeiBen export markets include Kenya, South Africa, Ethiopia, Syria and Libya etc where their trucks are used in ports, and aviation industry or as cement mixers and for fighting fires.
BeiBen plans to compete with the likes of MAN, Volvo and Scania in the Indian market which becomes the premium range, if there is any such thing, of the truck market. BeiBen will start by undertaking and researching by taking surveys in major cities across India to see the viability and future scope of the industry and the company.
The Indian truck market has been on the decline for the past couple of years with this year recording a 10% fall over last year, which already was showing negative growth. Since the industry has reached its lowest, there is a huge market for new entrants to seize a chunk of it as the market grows slowly in the next few years.
The revival of the industry has been initiated by the govt when it announced that it wants to make India a manufacturing hub by the end of this decade along with INR 38,000 crore outlay in the budget.