Hardly anyone took notice of Asia MotorWorks when it entered Indian truck business six years ago. After all, this was a turf dominated by Tata Motors and Ashok Leyland.

While the script hasn't exactly taken off on the lines of a David-versus-Goliath story, the Rs 1,200-crore AMW (which makes heavy trucks, tippers and specialised application vehicles) will still be pleased with its showing. Sales in the first quarter of this fiscal were 2,500 units, up from 1,200 units in the first quarter last year. Second quarter is expected to report 4,000 trucks, a near three-fold jump from 1,600 units last year.

As Mr Anirudh Bhuwalka, Managing Director and Chief Executive officer, elaborates, “The story has started to build traction now. We took the driver as the focus of our business plan and built everything around him.” This meant providing air-conditioned cabins in all trucks with music, a sleeping berth and cushion.

The company had no illusions about taking on the two market leaders but figured it could still deliver a better product. As part of its business model, it decided to outsource axles, engines and gearboxes to top suppliers like Meritor, Cummins and Eaton. Its focus was confined to product development, design and distribution.

“Nearly 70 per cent of my workforce is in sales, service and marketing as part of the plan to skip the technology curve and focus on what matters the most. We offered world-class cabins, a bigger gearbox and better suspension at a 10 per cent premium,” Mr Bhuwalka says.

This hardly mattered when higher power, extra load-carrying capacity and fewer halts helped the buyer pay back the premium in four months. AMW then launched a series of models such as the 25 and 31 tonners as well as the tipper to take the strategy forward.

The company has now opened a company-owned truck centre with plans underway to open 15 such centres across major States over the next five years. These will be flagship service centres with top-class facilities to help drivers and customers. Each centre, about a lakh sq. ft, involves an investment of Rs 10 crore.

Mr Bhuwalka is also keen to expand AMW's commercial-vehicle range while steering clear of the lower end. “We will move to the 9-12 and 16 tonners over time. In the next 2-3 years, we will strengthen our base in the heavy-duty segment,” he adds.

Global markets will also be part of the growth strategy. AMW trucks have recently entered Bhutan, Nepal and Bangladesh and the mid-term goal includes West Asia, Africa and the Asean region.

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