MAN is targeting sales of 100,000 trucks and 10,000 buses in the current year, says Mr. Anton Weinmann, Chairman of the Executive Board, MAN Nutzfahrzeuge Group.
The company is clearly adopting a global approach to sustain its future growth. Mr. Weinmann said that, “Europe will continue to remain its core growth market and other Strategic growth markets will be the CIS countries, Eastern Europe, India and China”. MAN is also looking at Southern Africa and Middle East as additional growth markets. Initially the target of 100,000 trucks was for 2010 but MAN would most likely achieve it in 2008.
Talking specifically about the Indian JV, Mr. Weinmann dismissed any speculation of an increase in stake in the venture. MAN set up a JV in India with Force Motors in 2005. The JV company, MAN Force Trucks Private Ltd. started commercial production in 2006 but the project got delayed due to various reasons including issues related to supply of components.
Currently MAN holds 30% and Force Motors holds 70% in the Indian company. There were rumors that of a possible increase in stake by MAN but Mr. Weinmann made it very clear that, MAN is committed to the Indian joint venture and dismissed the rumors of any possible increase in stake. The company has got over these initial teething problems and is now ready to go full steam.
Mr. Anton Weinmann says: “The strategy will be two fold. The Indian JV has developed a new series of truck badged as the CLA series which will be a Basic model more suitable for the Indian market and similar emerging markets”. The company has also developed a budget model for exports to developing economies. The Indian JV has already started exports to South Africa.
The Indian JV is targeting sales of 4500 trucks for the Targets for the year 2008-09 would be 4500 units which included 1000 units for exports alone.
At the MAN stand, the only ‘Made-in-India truck’ was on display was a CLA series Concrete mixer. This clearly showed the commitment of MAN towards the Indian JV.
Emerging markets
Of the markets outside Europe, Russia continues to be a key market for MAN with sales of over 5290 trucks in 2007. The company has sold over 4430 vehicles in Russia during the first 6 months of the current financial year 2008. China is one market where MAN is not present in a big way. The company acknowledges the fact that China will remain a very important market for growth in Asia. MAN is talking to Weichai and a few other Chinese companies for possible strategic co-operation.
“In addition, Weinmann said that the 2010 target of unit sales of 100,000 vehicles might be surpassed in 2008, confirming comments by Wrebo.
“We are anticipating that we will be able to sell 100,000 units. If the current conditions continue, than I see achieving this target next year as very likely,” he said.
