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AMW expects single digit growth this financial year

Source : BUSINESS_STANDARD
Last Updated: Thu, Oct 04, 2012 19:41 hrs

The country's third-largest heavy commercial vehicle (HCV) manufacturer expects the second half of the year to throw in some cheer for truck-makers, and make up for the sluggish sales in the first half. The company aims to end the fiscal with single digit growth. 

Meanwhile, the company is on track with its export plans. AMW would start exporting its HCVs to countries in Africa and West Asia apart from South Asian Association for Regional Cooperation countries by the end of 2013. 

"We expect sales to pick up during the second half of the year, which is anyway a peak season for commercial vehicles industry. During the April to August period our sales have been down by around 25 per cent, we have sold close to 3000 units. The industry overall is down by 15-20 per cent at the moment", said Anirudh Bhuwalka, managing director and chief executive officer, AMW. He added that the company expected to end the fiscal with moderate growth. "We expect to end the year with single digit growth. Growth in the second half will make up for the dip in the earlier half", Bhuwalka said.

The company had clocked 60 per cent growth in sales last year, selling around 10,000 trucks.

The company is planning a new range of trucks between the 25-39 tonne range, and as Bhuwalka said the entire range is suitable for both domestic as well as exports. "These are basically upgraded versions of existing products. Product development is an ongoing process. Our entire range of trucks fall in the value-added range", he added.

As for exports, he did not wish to share the initial volumes expected.

AMW has invested around Rs 1,500 crore for rolling out new models and for enhancing capacity at its existing unit at Bhuj in Gujarat. The facility has a capacity to roll out 50,000 vehicles per annum.

The company has an overall market share of 6 per cent in the trucking industry in the country, and in the mining and construction space it has around 27 per cent market share, Bhuwalka informed.



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