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K Giriprakash

Bangalore, Dec 16

Truck maker Asia Motor Works (AMW) is all set to launch buses in association with a Chinese manufacturer and light motor vehicles from its own stable next month.

Sources familiar with the project told Business Line that ASW might enter into a venture with a Chinese manufacturer to source key parts for launching buses in the country while LCVs will be made at its plant in Bhuj in Gujarat. According to industry estimates, the total size for such a project is between $350 million and $400 million.

Both the buses as well as a van and a mini truck in the LCV segment are expected to be launched during the Auto Expo next month in Delhi. In the first six months from April to October, the LCV segment has seen a year-on-year growth of about 16 per cent with the sale of nearly 1.92 lakh units in the domestic market.

This segment has already been made popular by Tata Motors, which launched the hugely successful Ace, while Hyundai Motors, Ashok Leyland, Mahindra & Mahindra and Hindustan Motors are also believed to be eyeing the sub-one tonne segment.

As a niche player in the heavy-duty truck segment, AMW also plans to expand its current 49-tonne portfolio by showcasing the 4930-tractor, a new generation truck with at the Auto Expo.

Currently, the company’s product portfolio includes the global truck series: 4923 tractor, 4018 tractor, 2523 tipper and 2518 haulage 2518 tipper, 2518 transit mixer and 4023 tractor. AMW has a fully integrated manufacturing facility spread over 600 acres at Bhuj.

The Asia Motor Works Managing Director and Chief Executive Officer, Mr Anirudh Bhuwalka, had told Business Line that the company plans to sell about 5,000 trucks during this fiscal and post revenues of about Rs 750 crore.

During the recently-concluded equipment and construction fair Excon, the company sold 112 vehicles of 2523 and 2518 tipper models worth a total of Rs 125 crore. The demand for higher tonnage trucks has increased recently because of a recent Supreme Court order which has banned overloading of trucks.

The demand is also fuelled by the economic growth in the country which in turn is driving the growth of the mining and construction industries.

AMW’s plant in Bhuj has a capacity of 10,000 trucks and is scalable and its current range of trucks is priced between Rs 23 lakh and Rs 28 lakh. AMW also has a R&D division and a steel press which has a capacity of 45,000 tonnes per annum. It is also working with Durr of Germany for its paint shop solutions. The capacity of the paint shop is 50,000 units per year. Its chassis rolling plant has a capacity of 25,000 tonnes per annum.

More Stories on : Alliances & Joint Ventures | HCV/LCV/Tractors

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