Asia MotorWorks Ltd. (AMW), is back in full force and is gearing up to take advantage of the opportunity unfolding in the truck industry from 2010 and beyond. The company is planning to stay focussed on heavy trucks and tippers and consolidate its position in the 16 to 49 tonne segment.
“The recession in the commercial vehicle industry did teach us some hard lessons”, says Mr. A. Ramasubramanian, President, Asia MotorWorks. “It has enabled us to tighten up and has given us the inner strength that if we can survive this downturn then we are really here to stay”.
Mr. Ramasubramanian was in Hyderabad recently to launch the new AMW 3123 8X4 Truck which aims to address the long-felt need for a rugged and reliable vehicle in the highly demanding construction segment as well as sectors such as road and dam building and other allied infrastructure segments. AMW is the first manufacturer in India to offer a customized solution of 42-metre concrete pump through the 3123 truck. The vehicle’s robust and durable construction makes it ideally suited for off road applications.
AMW’s 3123 truck, fitted with a 232BHP diesel engine, comes with a 6 speed gear shift with closely packed gear ratios, leading to longer life of transmission and reduced maintenance costs. The reinforced sturdy chassis construction is an ideal solution for applications such as concrete pumps and transit mixers. A trend-setting “ready-to-use” air-conditioned cabin – a standard fitment in all AMW trucks – has proved to enhance driver productivity, and is available in the 3123.
Mr. Ramasubramanian said: “With the increased thrust on the construction and infrastructure activities, AMWs strategy is to offer specialized products that redefine standards in the industry. The 3123 has been specifically designed to cater to the increased demands of the industry and lends itself to numerous applications making it a winner in its niche. We are confident that the robustness and durability of the 3123 truck will find ready acceptance enabling us to garner significant market shares in this segment.”
AMW is a relatively new player in the commercial vehicle industry. The company launched its trucks in 2007 and, within a short span of time, has sold over 10,000 heavy trucks across India. In the first half of 2008, AMW was charging ahead in full force selling over 500 trucks and tippers every month. The recession did upset the company’s plans.
Mr. Ramsubramanian said: “The recession has taught us lessons on cost control and frugality in both engineering and operation. We are definitely well prepared now and want to make sure that we have a cyclicality-neutral portfolio of products”.
AMW offers trucks from 16 to 49 tonne range across haulage, tipper and tractor-trailer segments. The company is also looking at entering the 4X2 truck segment, which is a mass market product. Currently the company is averaging volumes of 500 to 600 units per month. For the current year, the target is to sell 6000 units, said Mr. Ramasubramanian.
On the aggregates front, AMW has been offering its trucks with Cummins engines, ZF gear boxes, Meritor axles and Valeo clutch. The company has recently started offering Eaton gear boxes in some of the models including a 9 speed Eaton gear box on one of the tipper models. Cabs are currently being imported as SKDs. The company has invested on a separate cab making facility, which will start manufacturing cabs once volumes increase.
AMW has also invested on manufacturing its own tippers and trailers. The tipper facility takes care of most of AMW’s requirement and the balance requirement is met by Hyva. The company is looking at manufacturing other application specific products like bulkers at its own facility at Bhuj.
Talking about the market opportunity from 2010 and beyond, Mr. Ramasubramanian observed that the market may not be euphoric but will start witnessing steady growth. The total market size for heavy trucks in India will hover around the 200,000 to 250,000 levels hence manufacturers will need to look at exports to emerging markets to utilise their capacities, Mr. Ramasubramanian added.
There are at least 100 emerging market which Indian manufacturers can target and AMW will definitely start looking at this opportunity in the future. Currently the company has started exports to Nepal.
In 2008, AMW had announced its plans to enter the bus and LCV segment. Due to the recession, these projects had to be put on hold.
Mr. Ramasubramanian also said: “Currently our focus is on heavy trucks and once we consolidate our position in this segment, we will then start looking at the other product segment. We will definitely pursue the bus segment but probably in the next couple of years. As far as LCV is concerned, we are completely ready with the product and it is more a matter of strategic decision making as to when to launch the product”.
