Asia MotorWorks bets big on state

Mumbai-based Asia MotorWorks (AMW), manufacturer of heavy and medium commercial vehicles is eyeing the Karnataka market for boost in sales. Seeing the growing orders from the state even before its vehicles were launched there, the company has set up new dealerships in Bangalore, Hospet and Hubli.

Other than its flagship 49 tonne vehicle, AMW’s 4018 and 4023 tractors, 2523 Rock and Box Body Tipper, 2518 Tipper, transit mixer and haulage vehicles would be made available through the new dealerships. The company has sold nearly 120 vehicles in Karnataka so far and is expecting to sell 1000 trucks for the year 2008-09.

“We are expecting our vehicles to be used in iron ore mining, as containers in the petroleum industry,steel, road construction, general cargo load and for the upcoming metro rail project in Bangalore, “ said Anirudh Bhuwalka, managing director and CEO of AMW. The company has a total of 40 dealers in the country. Its range of vehicles is priced upwards of Rs 14.5 lakh.

Started in 2002, AMW has invested Rs 1100 crore so far at its 600-acre plant in Bhuj, Gujarat. The investments have been funded through debt and equity. The current manufacturing capacity is 10,000 units per year which will be scaled up to 50,000 units through a new facility at its Bhuj plant. Close to 7500 of its vehicles are plying on the roads and the company expects to touch sales of 17,000 units for the next financial year.

The company also has a wheel rim manufacturing plant whose capacity will be increased from 2 million to 15 million per annum. The wheel rims are used domestically and exported to OEMs in Europe.