Daimler Truck Expands Southeast Asia Presence with New Manufacturing Facility in Indonesia!

Daimler Truck has officially launched a new greenfield manufacturing facility in Indonesia, marking a significant milestone in the company’s growth strategy in Southeast Asia. The new plant, Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), located in Cikarang, boasts an annual production capacity of 5,000 Mercedes-Benz trucks and buses, signaling the company’s commitment to enhancing its footprint in the region.

The new facility spans 15 hectares and is designed to serve as a key hub for vehicle assembly and distribution across important Southeast Asian markets. This strategic expansion reflects Daimler Truck’s ongoing regional growth efforts as it seeks to strengthen its presence in one of the world’s most rapidly growing automotive markets.

The facility will be supported by Daimler India Commercial Vehicles (DICV), headquartered in Chennai, which will supply Completely Knocked Down (CKD) kits for the assembly process. This collaboration between Daimler’s global expertise and the local Indonesian team will ensure that the products manufactured at the plant align with both global standards and the unique requirements of the Indonesian market.

Satyakam Arya, Managing Director and CEO of Daimler India Commercial Vehicles, highlighted the significance of this integration. He stated, “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 facility will continue to produce flagship models tailored to meet the needs of the Indonesian market, such as Mercedes-Benz Axor Trucks and various Mercedes-Benz bus chassis models. Some of the models being assembled include the 2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, and 2528 C. These models are specifically designed to provide high performance, durability, and cost-efficiency, ensuring they cater to the local logistics, transportation, and infrastructure needs.

Sankaranarayanan Ramamurthi, President Director of DCVMI, emphasized the plant’s broader impact on the Indonesian economy. He mentioned, “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.”

By establishing the plant, Daimler Truck is investing in the local workforce, creating new jobs, and fostering long-term industrial growth. This aligns with the company’s vision of sustainable manufacturing and community empowerment.

The new manufacturing system at the DCVMI plant will integrate Mercedes-Benz’s global manufacturing standards, which will improve operational efficiency and streamline production processes. The facility is equipped with advanced infrastructure, including a test track for vehicle performance testing and a state-of-the-art paint booth, enabling high-quality vehicle production that adheres to Mercedes-Benz’s premium standards.

This development will not only increase Daimler Truck’s flexibility in production but will also accelerate the company’s innovation cycles, allowing for faster response to market demands and providing customers with more innovative and efficient solutions.

The inauguration of the Cikarang plant underscores Daimler Truck’s commitment to strengthening its presence in Asia, a region that is becoming an increasingly important part of the company’s global strategy. By setting up production in Indonesia, Daimler Truck is enhancing its local production capabilities and contributing to the growing demand for high-quality commercial vehicles in the region.

In conclusion, the opening of the DCVMI manufacturing facility marks a significant step in Daimler Truck’s strategy to expand its Southeast Asia presence, strengthen its supply chain capabilities, and offer tailored solutions that meet the evolving needs of Indonesian customers. This move enhances the company’s ability to provide cutting-edge, high-performance vehicles to a rapidly growing market while contributing to the local economy and industry development.