Daimler Combines Commercial Truck Businesses in Asia

Daimler AG will invest €300 million ($408 million) between 2014 and 2015 to add capacity and extend its sales network for commercial trucks in Asia and Africa.

The expansion will be coordinated by the company's Daimler Trucks Asia unit. It will combine the commercial vehicle development and field operations of two of the German company's subsidiaries: Daimler India Commercial Vehicles and Mitsubishi Fuso Truck and Bus.

Daimler announced the plan in May as part of its new "Asia business model" strategy. The company began assembling Fuso brand trucks in India earlier this year under the new structure.

By 2020 Daimler aims to achieve combined annual global sales of 290,000 trucks under its Fuso and BharatBenz brands. The company forecasts that demand for commercial trucks during the period will grow 20%-30% in southeast Asia and 5%-10% annually in Africa.