Daimler Truck Opens New Manufacturing Plant in Indonesia

23-Jun-2025

Key Takeaways:

New Facility: Daimler truck opens a new 15-hectare manufacturing plant in Cikarang, Indonesia, with an annual production capacity of 5,000 Mercedes-Benz trucks and buses.
Support from DICV: Daimler India Commercial Vehicles (DICV) will supply high-quality Completely Knocked Down (CKD) kits to support local production.
Regional Expansion: The plant will serve as a hub for vehicle assembly and distribution across Southeast Asia, reinforcing Daimler’s presence in the region.
Investment and Innovation: With an investment of IDR 500 billion (INR 260 crore), the plant will feature state-of-the-art manufacturing systems, including a test track and advanced paint booth, to meet Mercedes-Benz’s global standards.

Daimler truck has launched a new greenfield manufacturing facility, Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), in Cikarang, located in the heart of the Cikarang Industrial Area. The 15-hectare plant will produce Mercedes-Benz trucks and buses, marking a significant milestone in the company’s expansion strategy across Southeast Asia. With an annual production capacity of 5,000 units, the plant will serve as a hub for vehicle assembly and distribution to key markets in the region.

Collaboration with Daimler India to Strengthen Production

The new facility will be supported by Daimler India Commercial Vehicles (DICV) through the supply of high-quality Completely Knocked Down (CKD) kits from Chennai. This collaboration aligns with daimler truck’s broader strategy to integrate global technologies with local expertise. Satyakam Arya, Managing Director and CEO of DICV, emphasized that this initiative is about enhancing capabilities in Indonesia by transferring knowledge, developing talent, and bolstering the regional ecosystem.

The plant will focus on producing various Mercedes-Benz models tailored to the Indonesian market, including the Axor truck and specific bus chassis, such as the OH 1626 L and OH 1626 S. These models are key to expanding Daimler's presence in the Southeast Asian region, while the DICV plant will continue its role in exporting BharatBenz, FUSO, and other models to surrounding markets.

A Strategic Step Toward Regional Growth and Innovation

With a total investment of IDR 500 billion (approximately INR 260 crore), the new facility also symbolizes Daimler’s commitment to Indonesia’s economic development. Sankaranarayanan Ramamurthi, President Director of DCVMI, highlighted that the plant is more than an infrastructure project—it is a contribution to local communities and the broader industrial ecosystem. The sophisticated manufacturing systems in place at the Cikarang plant, including a test track and advanced paint booth, ensure that production standards meet Mercedes-Benz’s global requirements, enhancing both efficiency and innovation in Asia.

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