Daimler rolls out new production hub in Indonesia

By Staff Report June 19, 2025 1:40 pm IST

Daimler Truck has opened a new plant in Indonesia to assemble Mercedes-Benz trucks and buses, boosting local production and regional presence.

Daimler Truck has established a new greenfield manufacturing site in Cikarang, Indonesia, known as Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI). The 15-hectare plant has an annual production capacity of 5,000 Mercedes-Benz trucks and buses and is an important part of Daimler Truck’s regional expansion plan. It will act as a vehicle assembly and distribution base for important Southeast Asian markets.

Daimler India Commercial Vehicles (DICV), headquartered in Chennai, will provide high-quality Completely Knocked Down (CKD) kits to support the plant. This phase aligns with Daimler Truck’s “Bigger and Better” goal, which aims to improve customer solution agility, workflow, and resilience. The collaboration brings together Daimler’s global technologies and local Indonesian knowledge.

Satyakam Arya, Managing Director and CEO of Daimler India Commercial Vehicles, stated, “As DICV becomes more integrated into Daimler Trucks’ global manufacturing network, we will play an important role in building capabilities in Indonesia—transferring knowledge, developing talent, and strengthening the regional ecosystem.”

The plant will continue to produce Mercedes-Benz flagship vehicles such as the Axor truck and bus chassis, which include the 2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, and 2528 C.

Sankaranarayanan Ramamurthi, President Director of DCVMI, commented, “This plant is more than just 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.” Each unit manufactured here symbolises not only engineering brilliance but also a spirit of collaboration and our belief in Indonesia’s future.”

The Cikarang facility has manufacturing systems that are in line with Mercedes-Benz’s global standards. The plant, which includes a test track and a sophisticated paint booth, increases manufacturing efficiency and flexibility and improves Daimler Truck’s footprint and innovation capabilities in Asia.