New products to roll out soon
Russian truck major Kamaz is in India for the long term. With over 200 trucks on Indian roads within six months of its launch, Kamaz Vectra Motors Ltd. (KVML) has laid strong foundation for future growth in India. Among the many global players that’ve entered the Indian market in the last few years, Kamaz is showing a lot of promise and commitment. For Kamaz, India is not just another market, but “It is the most important market for its future growth”.KVML is a joint venture between Kamaz OJSC and the Vectra Group (51:49). The company offers its 31-tonner dump truck Kamaz-6540 (8×4) with 19-t legal payload. With more orders for trucks on hand, the company has announced expansion of its product range. “We will launch the 6X4 tipper and 4X2 tractor in September 2011 and 6X4 heavy duty tractor by November. All these products are currently undergoing test. By the end of this year, we will have the complete range to offer – 8X4 tipper, 6X4 tipper, 4X2 tractors and 6X4 tractors”, says Mr. Denis Trifonov, CEO of KVML.
KVML has set up a plant at Hosur with an annual capacity to produce 5,000 trucks. Currently the company is assembling the Kamaz-6540 tipper, and it will shortly start production of tractors Kamaz-5460 (4X2) and Kamaz-6460 (6X4), as well as Kamaz-6520 dump trucks. The company has localized most of the key aggregates achieving over 70 per cent indigenisation. With the existing products and the proposed launch of new products, the company has set an ambitious target to sell 2,500 units during 2011-12. The company commands 18 per cent share in the 8X4 truck market in the very first year.
Mr. Denis Trifonov commented: “Our major customers are mining and construction companies. Our trucks are operated in extremely severe conditions in coal and iron ore mines. We are also negotiating with the sea ports which are extending their territories”.
“Our trucks have been tested and adapted to suit Indian conditions. We have introduced more than 300 enhancements and design changes on our trucks to suit the local conditions. We now have 72 per cent local content on our trucks, including transmissions sourced from ZF and brake systems from Wabco in India. We are now offering Cummins engines as an option for our customers. Apart from the cabin, axles and suspensions, all other major components are being sourced locally”.
The current offering Kamaz-6540 is equipped with Kamaz V8, 281 hp Euro 3 engine with the option of Cummins 285 hp Euro 3 engine. The truck is fitted with two fuel tanks of 210 litres displacement each, which will allow lengthy truck operations without refuelling. It can carry up to 18 m3 cargo and its tipping angle during the unloading can reach 55°. KVML is offering four different variants of the 6540 model – 16 cum box and Rock body, 18 cum box body and 20 cum box body.
The Kamaz 6540 is currently used mostly in road construction projects by construction companies “We see the future is for 8X4 tippers for construction and on-road applications. The 6X4 will be used for mining transportation, and for deep mining application the company plans to launch an 8X4 49 tonner heavy duty tipper by February 2012”, added Mr. Trifonov.
In September KVML will also be launching the longer wheel base chassis for super structures on its 8X4 models for applications like cranes, concrete mixers, boom pumps. The company will be signing an MoU with crane manufacturers soon for the purpose.
Kamaz is strengthening its presence across India. Initially, the company had bagged big orders from the east and western regions, and in the last three months, the company has started selling good numbers in the South. “We finally managed to establish that we are the best solution for their logistic requirements”, say company sources.
KVML is in the process of establishing a dealership, sales and service network across India. The company is represented through dealer and service network in 15 states, mostly in the South, West and East. KVML, through its dealership, has also started mobile service workshops, with a service touch point every 300 km on the national highway, and the target is to reach a stranded vehicle or a customer within a maximum of 3 hours time”.
Considering the growing demand for its products, KVML is investing an additional $4 million on the plant for setting up a second assembly line for all the new products.
Mr. Trifonov says: “The Indian plant will not only serve the domestic market but will be a regional hub for other nearby markets, particularly for right-hand drive markets. This year we will focus only on the Indian market, and for the next year we have already signed contracts for exports to South Africa. We are also looking at exports to Bangladesh and Indonesia”.
