Tuesday, March 30, 2010

AMW Targets 50,000 Trucks by 2015

Asia Motor Works is keen on being part of the momentum in the medium and heavy trucks segment, where output is expected to touch 2.25 lakh units in the medium term.

“We will hit 50,000 units in the next five years. Capacity has been installed and we are launching new products, particularly mass market trucks,” said Mr Anirudh Bhuwalka, Managing Director.
He was speaking to a group of visiting journalists at the company's Bhuj facility where capacity has been enhanced to 50,000 units from 10,000 units.

Basic truck

AMW is also launching 25- and 31-tonners in the high-volume basic truck segment. The medium and heavy truck market, expected to cross 1.5 lakh units this fiscal, is dominated by Tata Motors and Ashok Leyland.

The mass market of trucks with ‘bare minimum comforts' is close to one lakh units. According to Mr Bhuwalka, a section of customers is demanding better quality trucks.

“Having established a brand image for comfort and sophistication, we see a clear advantage for ourselves, as there is a shift in customer preference for modern trucking,” he said.

AMW has sold around 5,000 trucks this fiscal and expects to grow three-fold in 2010-11. Revenue clocked was in the region of Rs 800 crore, officials said.

Mr Bhuwalka added that the company had put on hold its plans for buses and light commercial vehicles, in order to focus on medium and heavy trucks.

AMW sources engines from Cummins and the gearbox from ZF and Eaton. The cabins, which were being imported from China, are now sourced locally, facilitated by the commissioning of the new paint shop.

The medium and heavy truck space will see launches by Tata Motors, Ashok Leyland, VE Commercial Vehicles and Mahindra-Navistar in the coming months.
The Hindu bussines line

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