Asia Motorworks to enter mass market, aims at breakeven in Q4

Indian heavy commercial vehicle (HCV) maker Asia Motoworks Ltd (AMW) has decided to enter the mass truck market by the end of the current year for a share in the over 2.2-lakh units market.

"We will introduce new products in the competitive 16 tonne haulage market (cowl variant) segment and new products in 31 and 25 tonne segment," AMW President A Ramasubramanian told reporters here today.

The mass market from medium to heavy commercial vehicle market is likely to be 2.2 lakh units out of the total 5.76 lakh total commercial vehicles sold in 2009-10, Ramasubramanian said.

This segment accounted for 25 per cent of volume and 37 per cent in value of the industry.

 

The company is aiming to achieve breakeven in the second half of the current fiscal.

"We have sold 3,300 trucks till September and hope to sell 5,000-5,500 in the second half. This will help us to achieve breakeven. In 2011-12, we hope to breakeven with a sale of 10,000-12,000 HCVs," Ramasubramanian said.

The company expected to do business of Rs 1,700-1,800 crore turnover, out of which Rs 1,400-1,500 crore would be from trucks, trailers and tippers.

The company has a market share of three per cent overall, but hopes to increase its presence with the new entry into mass market segment.

The company has an installed capacity to produce 50,000 trucks per annum at Bhuj in Gujarat at a investment of Rs 1,400 crore.