Daimler Truck has taken a major step in expanding its footprint in Southeast Asia with the inauguration of Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), a state-of-the-art greenfield facility located in the Cikarang Industrial Area near Jakarta.
Spread across 15 hectares, the DCVMI plant was built with a total investment of IDR 500 billion and has an annual production capacity of 5,000 Mercedes-Benz trucks and buses. It forms the backbone of Daimler Truck’s “Bigger and Better” vision—bringing enhanced scale, operational agility, and localised manufacturing capability to one of the region’s fastest-growing commercial vehicle markets.
What sets this initiative apart is its tri-nation collaboration model that brings together German engineering precision, Indian manufacturing excellence, and deep local insight from the Indonesian market. Daimler India Commercial Vehicles (DICV), based in Chennai, plays a crucial role in this integration. DICV will supply high-quality Completely Knocked Down (CKD) kits to the new Indonesian facility, ensuring supply chain efficiency and enabling scalable, cost-efficient production tailored to regional needs.
Satyakam Arya, Managing Director and CEO of DICV, highlighted India’s pivotal role in the expansion. “India remains a cornerstone of our global export strategy. Leveraging Indonesia for the ASEAN region is about expanding our reach, not shifting our focus,” he said.
“As DICV becomes more embedded within Daimler Truck’s global manufacturing network, we are not only contributing CKD kits but also transferring knowledge, developing local talent, and reinforcing the regional ecosystem,” he added.
The Cikarang facility will continue production of key models such as the Mercedes-Benz Axor truck range—including the 2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, and 2528 C—as well as bus chassis OH 1626 L and OH 1626 S, all tailored for the Indonesian market. These products are designed with local operating conditions in mind, combining durability, efficiency, and comfort.
Sankaranarayanan Ramamurthi, President Director of DCVMI, said, “This plant is not merely an expansion of our infrastructure—it embodies our vision of contributing meaningfully to Indonesia’s industrial growth, job creation, and community empowerment. Every vehicle we produce here is a symbol of global collaboration and local commitment.”
The facility integrates all manufacturing processes under one roof, featuring a test track that simulates real-world conditions and an advanced paint booth designed to meet global Mercedes-Benz standards. These facilities ensure quality, performance, and safety while also enabling faster turnaround and enhanced operational efficiency.
The DCVMI plant is also a vital part of Daimler Truck’s ambition to deepen its local footprint in Asia and build a future-ready, regionalised manufacturing and distribution network. By combining Germany’s engineering leadership, India’s cost-efficient production capabilities, and Indonesia’s growing market potential, the company is setting a new benchmark in regional synergy.
With this investment, Daimler Truck not only reinforces its confidence in Indonesia’s industrial future but also signals a broader intent to drive innovation, expand localisation, and create lasting impact across Southeast Asia.
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