The Hindu Business Line : MAN Force venture to focus on exports

Mumbai, May 9 MAN Force Trucks, the 70:30 joint venture between India’s Force Motors and German-based MAN Group, plans to export half of the total production by 2010.

“We will produce 24,000 trucks by 2010 and half of the production will be for worldwide market,” said Mr Franz-Xaver Polster, Managing Director, MAN Truck & Bus India. The joint venture company is looking to strengthen its presence in the niche segment of heavy duty sector in the domestic market as well as develop India as an export hub in the region.

“We will export trucks to Africa, West Asia, Central Asian countries and Far East Asia. Export is our core strategy,” Mr Abhay Firodia, Chairman of MAN Force Trucks, said. Though the company started production last fiscal, the volume was small. “Last fiscal we did not start real production. For the financial year 2009, we target a volume of 6,800 units,” he said.

The joint venture has plans to enter into the bus market but not in the near future. “First, we have to stabilise our truck business. Then we will look into other possibilities too,” said Mr Peter Erichreineke, Member of the Executive Board, Sales and Marketing, MAN Group. The buses from MAN Force joint venture will be “India-specialised,” he said.

In the truck segment, he said, “Our forecast is that the heavy truck sector market will double in next three years. We are aiming for 90 per cent localisation to be competitive in the domestic market. Now local parts make up 85 per cent in our trucks from the level of zero two years ago,” Mr Erichreineke said.

MAN Group on Monday opened its new India headquarters in Mumbai on Friday. This is part of integrating various activities of the company in India. “Our specialists from diesel engines, commercial vehicles, turbo machinery, and industrial services combine to form a strong team for addressing customer needs and requirements,” said Dr Georg Pachta-Reyhofen, Executive Board Member, MAN AG.

He said that the company will increase its sourcing from India in the near future. However, he did not spell out the investment in this regard. “About 20 per cent of our procurement staff who are currently in Germany will move to Asia. Of them, 10 per cent will be in India,” Dr Pachta said.

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