Mumbai: Heavy commercial vehicle manufacturer Asia Motor Works (AMW) is planning to expand capacity to 50,000 units per annum, up from the current 10,000, according to company sources.
Reportedly, the company is also planning a comprehensive presence across the entire commercial vehicle line up, and plans to foray into light commercial vehicle, buses, and the vans.
According to R C Mangal, senior vice president of marketing at AMW, by April 2008 the company would have a capacity of 50,000 units. The expansion plan is in place to cover capacity that would be created, over and beyond these 50,000 units. Reports indicate that AMW will unveil its LCV products at the Autoexpo in January 2008, in New Delhi.
According to Anirudh Bhuwalka, managing director and chief executive officer, AMW, the company would well cross revenues of Rs500 crore by financial year 2008, around which time it would also achieve a 99 per cent localisation level. Presently, AMW is working with a, 85 per cent localisation level, importing only the gearbox. Over the coming month, imports of the vehicle's cabins from China would be history, with localisation taking over.
AMW launched a 49 tonne HCV this week, which is targeted at heavy project and over-dimensional (OD) cargo. The company claims to have a 70 per cent market share in the 3,000-5,000 units per annum 49-tonne truck segment.
Market reports indicate that though the overall commercial vehicle space is not growing at present, the higher end of the segment has skipped any impact of the slowdown. AMW is reportedly optimistic about an increased demand for high capacity vehicles, once the road network develops, especially when large stretches of the Golden Quadrilateral project are nearing completion.