Heavy commercial truck-maker Asia Motor Works (AMW) is expected to launch its first luxury bus in fourth quarter, which is likely to drive competition in the segment, mainly dominated by overseas players.
"The luxury bus is likely to hit the road in the January-March quarter," AMW managing director Aniruddh Bhuwalka told PTI here.
The company was to launch the vehicle in September, as announced at Auto Expo 2012 in January.
The 1,000 unit-a-year high-end luxury bus market is still in nascent stage, growing almost at 10-15 percent annually and dominated by players such Volvo, Merc, Bhuwalka said, adding that AMW, India's youngest commercial ruck-maker, would strife to corner a decent pie out of this volume.
Not disclosing the price, he said it will be much cheaper than Volvo or Merc which are priced at Rs 1 crore.
"The pricing will be in line with our philosophy of providing world class product at a competitive price."
While AMW trucks, all of which have AC cabins, the first in the country, are priced 15-20 percent above Tata and Leyland, but they are over 50 percent cheaper than Volvo.
The city-based auto-maker, which has its manufacturing facility at Bhuj in Gujarat, also plans to toll out 6-8 models this fiscal as a step further to enhance its market share.
"This year we are planning to roll out anywhere between six to eight products. Of it majority would be variants of the existing products," Bhuwalka said.
AMW's overall market share stands at 6 percent and 25 percent in mining and construction equipment, respectively.
Currently exporting its trucks to SAARC region, AMW is readying for newer markets like Middle East and North African region with its new generation products, he said.
Last fiscal, AMW sold 10,000 trucks growing by over 50 percent as against a market growth of 8 percent, Bhuwalka said adding the robust growth came on the back of new products it launched and its foray into a 16-tonne category.
With the commercial vehicles segment on the rise, there are several local auto players who are planning to cash in on the growth. It has been reported in The Business Line that AMW (Asia Motor Works), a heavy commercial vehicles manufacturer, is planning to increase its network and product range in the eastern region.
According to the report, the company has already made a foray into markets such as West Bengal, Jharkhand and parts of Orissa including Balasore and Barbil. It was reported that rich mineral resources including coal reserves and increased focus on hydro-electric power generation is likely to bode well for the company’s range of tippers in the medium and heavy vehicles segment.
The report also stated that the most popular tipper models are those that find use in the construction, mining and infrastructure sectors. In India, AMW has a fully integrated manufacturing unit at Bhuj in Gujarat. It has a planned capacity of 50,000 commercial vehicles per annum and employs around 1,200 people, it was mentioned.
AMW has acquired third place in the country in heavy Commercial vehicles. However the statement that they employ 1200 people speaks a lot about how much manufacturing they actually do and what is their idea of a "fully integrated manufacturing unit" unless they have fully automated robotic lines for all shops.
According to sources they are looking at a fully integrated manufacturing unit, until now they were importing cab's from china, now they are looking at building each and every component in house to price there products aggressively, TM & AL better watch out
India's third largest heavy commercial vehicle (HCV) manufacturer Asia Motor Works Ltd (AMW) with its manufacturing plant is Kutch district has got nod from Gujarat High Court for demerger into two companies for for better and efficient management and attracting investments.
The Scheme of Arrangement for demerger under Sections 391 to 394 of the Companies Act, 1956 was approved by the Justice Abhilasha Kumari last week.
Following this approval the AMW would demerge into AMW Motors Ltd (AMWML) and AMW Auto Components Ltd (AACL).
AMW is primarily engaged in the business of manufacturing, retailing, buying, selling, importing, exporting, and dealing in motor vehicles, components, trucks, tractor chassis, machineries, automobile fitment, to name a few.
After the demerger the heavy commercial vehicle division of AMW would vest with AMWML while the auto component divisions would go to AACL. The demerger was sought for better and efficient management of the resulting undertakings. AMW had further contended that demerger would lead to pooling of investment interest in the resulting companies and would increase the ability to make use of, and benefit from, the asset base in a more efficient way. It had further said that the scheme of arrangement would enhance the equity value of the demerged company's shareholders directly and reduce its liabilities due to the transfer of entire liabilities and obligations pertaining to the demerged undertakings, thereby resulting in lower debt serving and support from the undertakings.