Daimler Truck has opened a new greenfield facility in Ciaran Industrial Area, marking a significant milestone in its Southeast Asia expansion. The 15-hectare plant, which can produce 5,000 Mercedes-Benz trucks and buses annually, represents an IDR 500 billion investment. Supported by Daimler India Commercial Vehicles (DICV) in Chennai, the facility combines German engineering,
Indian Manufacturing, and Indonesian market expertise to serve key Southeast Asian markets efficiently. The plant is part of Daimler Truck’s long-term strategy in Southeast Asia, focusing on expanding its reach and transferring knowledge, developing talent, and strengthening the regional ecosystem. The plant will continue producing flagship models such as Mercedes-Benz Axor Trucks and bus chassis specifically designed for the Indonesian market. The plant adopts an integrated manufacturing system, enabling more efficient and streamlined production processes.
In a bold step to strengthen its footprint in Southeast Asia, Daimler Truck has inaugurated its state‑of‑the‑art manufacturing facility, Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI), situated in the industrial hub of Cikarang, West Java. The new 15‑hectare greenfield plant marks a pivotal milestone in Daimler’s regional growth strategy and elevates its manufacturing capacity in the ASEAN region. The plant officially went live in June 2025, following rapid development and strategic collaboration with local and international stakeholders.
Strategic Location & Regional Ambitions
Located in the Cikarang Industrial Area, approximately 40 km east of Jakarta, the DCVMI facility draws from a long heritage of automotive manufacturing in Java but introduces a next‑generation layout optimized for efficiency and flexibility. With an annual capacity of 5,000 Mercedes‑Benz trucks and buses, the plant is poised to serve both domestic demand and export markets across ASEAN countries…(Manufacturing).
Investment & Infrastructure
Built with an investment of IDR 500 billion (roughly ₹260 crore), the new facility includes advanced manufacturing systems designed to Mercedes‑Benz global quality standards. Highlights include a test track and an advanced paint booth, which support faster innovation cycles and streamlined production workflows
Collaboration with India’s DICV
Daimler India Commercial Vehicles (DICV), based in Chennai, plays a critical role in the plant’s operations by supplying high‑quality Completely Knocked Down (CKD) kits. This ensures seamless transfer of technology and manufacturing expertise. According to Satyakam Arya, Managing Director & CEO of DICV, the collaboration embodies knowledge sharing, talent development, and ecosystem integration between India and Indonesia.
Internal link suggestion: About DICV’s global role.
Product Portfolio & Market Fit
DCVMI will assemble a range of Mercedes‑Benz Axor truck models—including 2528 CH, 4928 T, 4028 T, 4023 T, 2528 RMC, 2528 CX, and 2528 C—and bus chassis models such as OH 1626 L and OH 1626 S. These are tailored specifically for Indonesian roads and logistics needs. The lineup reflects Daimler’s targeted approach to address both local and regional commercial transport demands.
Internal link suggestion: Explore Axor truck variants.
Operational Efficiency & Localisation Strategy
Compared to its older Weathering plant, DCVMI significantly improves factory layout efficiency: DICV experts estimate the kit travel distance on the assembly line dropped from 16 km to just 0.8 km This leaner configuration reduces production lead times and cost while increasing flexibility vital for competitive commercial vehicle operations Localization vision includes ramping up Indonesian component usage over time, aligned with broader market and regulatory guidelines.
Economic Impact & Forward Outlook
According to DCVMI President Director Sankaranarayanan Ramamurthi, the new plant is meant to stimulate local job creation, industrial growth, and enhance Indonesia’s role in the global auto supply chain. The facility aligns with Daimler’s “Bigger and Better” philosophy—combining German engineering, Indian manufacturing, and Indonesian market scale into a cohesive hub (Manufacturing)
With DCVMI now operational, Daimler is positioned to address rising demand for medium and heavy commercial vehicles in Indonesia and nearby regional markets—while accelerating innovation cycles and operational resilience across ASEAN. DLF’s counterpart, Daimler Truck, through this new plant, is not just expanding capacity—it’s reinforcing its regional ecosystem. By blending global capabilities, Indian manufacturing support, and Indonesian industrial participation, Daimler is charting a robust roadmap for its commercial vehicles business in the future.
