AMW plans foray into bus segment

Homegrown truck player AMW on Thursday said that it is upbeat about rolling out buses, mainly in the inter-city segment, and is planning to introduce its products by April next year.

Talking to Deccan Herald on the sidelines of the ongoing construction equipment exhibition EXCON 2013 here, AMW Motors Director (Marketing) R N Rao said, “We are focussing on foraying into the inter-city bus business, which is a burgeoning aspect of the transport industry. We plan to roll out our first bus by April next year.” He, however, declined to reveal specific plans of the rollout, only adding that the idea is on the drawing board.

Rao also announced that Mumbai-based AMW will launch 16-tonne haulage trucks, also in April next year, which will join its existing stable comprising high productivity tippers, mid-segment tippers, haulage trucks and the newly launched High Capacity Transit Mixer 3118TM among others.

The company’s lone manufacturing plant in Bhuj, Gujarat, has a capacity to produce 50,000 vehicles units annually.

Talking about the economic slowdown affecting the infrastructure and construction equipment industry in India, Rao said, “The last nine quarters have seen a downturn and we feel that the situation is yet to improve. With a stable government in place following elections next year, fair amount of funds and good infrastructure plans, we expect the situation to improve in the next 3-4 quarters.”

Slowdown effects

The economic slowdown has compelled many manufacturers to look at export markets, with the additional benefits of the rise in rupee value against the dollar. Presently, AMW exports to Bangladesh, Nepal and Sri Lanka, and until recently, to Bhutan.

“Exports have helped sustain our business. Currently, we are exploring exportprospects to new international markets such as South Africa, Asean countries and the Middle East in the coming year,” Rao said, adding that the company is also focussing on non-cyclic businesses such as spare parts.

With 150 dealers and 1,500 service centres, AMW is also aiming at reducing the distance between its many service touchpoints to 50 km from the current 75 km.