Daimler Truck’s new Cikarang facility will assemble 5,000 Mercedes-Benz trucks/buses yearly using CKD kits from Chennai, boosting ASEAN supply chain.
Chennai to Cikarang: Indian-Made CKD Kits to Power New Indonesian Truck Facility.
Cikarang, Indonesia – Strengthening its presence in Southeast Asia, Daimler Truck has inaugurated its greenfield manufacturing plant in Indonesia, marking a strategic expansion in the region. The Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI) facility, located in Cikarang Industrial Area, will assemble 5,000 Mercedes-Benz trucks and buses annually, supported by CKD (Completely Knocked Down) kits supplied from Daimler India Commercial Vehicles (DICV) in Chennai.
Key Highlights of the New Plant
✅ Strategic Location – 15-hectare facility in Cikarang, a major industrial hub near Jakarta
✅ Production Capacity – 5,000 trucks & buses per year for domestic and export markets
✅ Investment – IDR 500 billion (~₹260 crore) in initial phase
✅ Supply Chain Synergy – Indian operations (DICV Chennai) to provide high-quality CKD kits
✅ Market Reach – Will serve Indonesia, Thailand, Vietnam, and other ASEAN markets
Why This Expansion Matters?
🌏 Strengthening ASEAN Presence
- Indonesia is a key growth market for commercial vehicles
- Plant will help Daimler compete with Japanese & Chinese truck makers in the region
🛠️ Leveraging Indian Manufacturing Expertise
- DICV Chennai, a global export hub, will supply CKD kits
- Reinforces India’s role in Daimler’s global supply chain
🚛 Boosting Localization & Cost Efficiency
- Local assembly reduces import duties & logistics costs
- Supports Indonesia’s “Making Indonesia 4.0” industrial policy
What’s Next for Daimler in Asia?
🔹 Scaling up production to meet ASEAN demand
🔹 Potential for electric truck production in future phases
🔹 Stronger India-Indonesia industrial collaboration in auto sector
