Daimler Truck opens a new Mercedes-Benz plant in Indonesia

Daimler Truck has launched a new commercial vehicle manufacturing plant in Indonesia. The facility, called Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), is located in the Cikarang Industrial Area. This greenfield plant is part of Daimler’s expansion plan across Southeast Asia.

The plant spans 15 hectares and can build up to 5,000 Mercedes-Benz trucks and buses every year. Daimler has invested IDR 500 billion (about ₹260 crore) to set up the site. The facility will assemble and distribute vehicles for key markets in the ASEAN region.

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Daimler India Commercial Vehicles (DICV), based in Chennai, will support the Indonesian plant. DICV will supply high-quality CKD (completely knocked down) kits. The Chennai team will also help transfer knowledge, build local talent, and support the regional supply chain.

“Leveraging Indonesia for the ASEAN region is about expanding our reach, not shifting our focus. As DICV becomes further integrated into Daimler Truck’s global manufacturing network, we will play a key role in building capabilities in Indonesia—transferring knowledge, developing talent, and strengthening the regional ecosystem,” said Satyakam Arya, Managing Director and CEO of DICV.

He also spoke to Businessline about product strategy. He explained that the Indonesia plant will build only Mercedes-Benz trucks and buses. DICV in India will continue exporting BharatBenz, FUSO, Freightliner, and Mercedes-Benz buses. Nearly 70% of the components for Indonesian vehicles will come from India.

The new factory will produce key Mercedes-Benz truck models such as the Axor 2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, and 2528 C. It will also manufacture the OH 1626 L and OH 1626 S bus chassis. These products are tailored for the Indonesian market.

With this move, Daimler Truck strengthens its presence in ASEAN. Customers in the region will get quicker access to commercial trucks. The company also expects better logistics, stronger local support, and improved truck pricing across Southeast Asia.

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