U.S. commercial-vehicle maker Paccar Inc. is studying the possibility of introducing heavy-duty trucks in India from its Dutch unit DAF Trucks NV, as it attempts to expedite its global growth by tapping into emerging markets and partly offset a slowdown in Europe.
Donald Schulte, managing director for India initiatives at Paccar, in a recent interview said the company is considering options to either sell imported fully-built trucks in India or to build an assembly plant.
A foray into India by Paccar would put it into competition with other global truck makers such as Daimler AG, Volvo AB, MAN AG and Navistar International Corp. who already operate here either via their own units or with joint ventures with local companies.
A total of 499,965 trucks and buses were sold in India during April-November 2011, up 20% from a year earlier, according to data issued by the Society of Indian Automobile Manufacturers. The market is dominated by Indian companies such as Tata Motors Ltd., Mahindra & Mahindra Ltd. and Ashok Leyland Ltd.
"We see India as a major commercial-vehicle market that is growing," Mr. Schulte said. "We always take a long-term view of a market and we are studying our options for India."
He said Paccar doesn't have a definite time frame to commence operations in India.
Paccar is participating at the ongoing Auto Expo in New Delhi with its DAF brand of trucks. DAF trucks are currently made only in Eindhoven, the Netherlands, and in Westerlo in Belgium.
"We see infrastructure investments, increasing buying power of people will make it a very compelling investment in India for those who want to have a long-term investment," Mr. Schulte said.
Bellevue, Wash.-based Paccar is the second-largest seller of heavy-duty trucks in the U.S. behind Daimler's Freightliner brand. Its North American truck brands are Kenworth and Peterbilt.
As part of its steps to expand in emerging markets, Paccar said recently it had begun constructing an assembly plant for DAF-brand trucks in Ponta Grossa, Brazil. But the company has said it would scale back truck production in Europe.
The company last year started a technical center in the western Indian city of Pune in partnership with KPIT Cummins Infosystems Ltd. Mr. Schulte said the Pune center is the third such facility for Paccar after the U.S. and the Netherlands.
He said staff count in Pune will be expanded to 200 by the end of December from 25 now.