Asia Motor plans to expand product range this fiscal

Gujarat-based heavy commercial vehicle manufacturer Asia Motor Works Ltd (AMW) is planning to expand its product portfolio by entering into 16-tonne mass market category by the end of this fiscal. The firm also targets over 80 per cent rise in its turnover to Rs 1,800 crore this fiscal, from Rs 1,000 crore last year.

“We already hold 13 per cent of the total market share in tippers. Now, we want to get into the full range of 16-49-tonne commercial vehicles and cover all segments. As part of this, we will enter into the 16-tonne mass market with a competitive price,” said A Ramasubramanian, AMW President. AMW, which was founded in 2005, expects that its sales may increase more than 157 per cent to 8,500 units from 3,300 units last year.

 

“Riding on this sales numbers, we hope that our turnover this financial year would rise 80 per cent to Rs 1,800 crore from Rs 1,000 crore last year. We have already crossed the last year’s 3,300-mark in sales by September,” he added.

Currently, AMW has six platforms offering 15 variants and by the end of this financial year, with new products in the pipeline, the number of platforms would increase to 14.

“As infrastructure sector is booming in the country, with in next two years we are planning to introduce buses also. However, by that time, we will have nearly 72 variants in our kitty,” Ramasubramanian said.

The company has a 600-acre manufacturing facility in Gujarat’s Bhuj with an installed capacity of 50,000 trucks per annum. It is producing 700-800 trucks now and will target more on mining and construction business. “As Eastern states — like West Bengal, Bihar, Orissa and Jharkhand — are buzzing with mining activities, it holds a special spot on our business menu and contributes close to 20 per cent of our total revenue. We expect that the share of East will rise to 30-35 per cent soon,” he said.

AMW has 69 dealers across the country, which they want to raise to 150 in next three years with the expansion of product portfolio.

“Now, Northern and Western part of the country contribute 65 per cent of our sales. Rest is shared between East and South, we now expect East's share to zoom considerably,” he added.

Asia Motor — which claims to be the third largest heavy motor vehicle manufacturer in the country — is also one of the largest wheel rim manufacturers in Asia, whose clients include Tata, Daimler and Star Wheels. Till date, AMW has sold 12,000 trucks,out of which about 200 trucks were exported to Bangladesh and Nepal.