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With the domestic trucking industry on a slow lane, Kutch-based heavy commercial vehicle maker Asia Motor Works (AMW) is now turning its focus towards exports markets.
Having cracked six international markets in around a year’s time, the company is now looking at newer markets in West Asia and Africa.
“We have very recently appointed a partner in Indonesia, and just opened Kenya,Tanzania and Bangladesh. We are looking at expanding our presence in more Middle Eastern and African countries during this year. As for South Asia, we are already present in Myanmar, Vietnam and Malaysia. We would be looking at Sri Lanka too in the near future,” said Anirudh Bhuwalka, managing director and CEO of AMW adding that it is actively looking at exports markets in order to mitigate the risks in the domestic market which is going through a slowdown.
The company, which enjoys a four per cent market share nationally, has sold around 5,000 trucks last year.
“The overall industry has dropped by 25 per cent and we are in line with that. The industry volumes have come down. However, the truck cycle has bottomed out, and the second half of this fiscal should see some revival in demand. A lot depends on the outcome of the elections,” Bhuwalka explained. As of now, exports contribute to around five per cent of its total sales.
On another hand, Bhuwalka is also expecting to clock a significant growth in the auto component business as well, which has been clocking a compounded annual growth rate of 20-25 per cent on the export front.
AMW had de-merged the auto component business into a separate entity last year for better management and attracting investments. Following a nod from the Gujarat High Court in end 2012, AMW had demerged into AMW Motors Ltd (AMWML) and AMW Auto Components Ltd (AACL). AMW manufactures wheel rims for cars, trucks, tractors and several other vehicle categories. AMW’s wheel rim plant has an installed capacity of 15 million wheel rims per year for a range of automobiles.
“We had sold around 1.8 million wheel rims last year, and this year we are looking at doubling it. Exports constitute nearly 25 per cent of the overall sales in the component business,” Bhuwalka said. He is upbeat on exports of autocomponents as he feels the weakening rupee has given an advantage to Indian players vis-a-vis the Chinese competition.
“While the rupee has weakened vis-a-vis the dollar, the Chinese yuan has strengthened. This helps us to crack new markets. We are already exporting to countries in Europe, Latin America and the US,” he said.
