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Old 2nd May 2016, 20:31   #16
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Default Re: AMW Trucks in deep trouble; majority stake up for sale

If you see the sales figures for last few years they were second to AL in the tractor sales in the year 2011. A construction contractor with a parking lot near my residence has two 4 Axle 31 ton models with cement despensers mounted on them.
I was chatting with the owner once, and he was very satisfied with the vehicle. He just said that the trucks are good, but as small fleet own wit only 20 trucks who replaces 3 every year, he doesn't dare to go in for more than two made by a new company. Infact he purchased one Tata Prima and a Leyland 3118 saying that Prima is a new model, and he will observe for a year before thinking of another.
This lethargy for tructing a new product, and the overall lower growth within short time after the launch of the company played a big role in what happened.

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Old 5th May 2016, 15:00   #17
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Default Re: AMW Trucks in deep trouble; majority stake up for sale

Originally Posted by Ashley2 View Post
AMW of course as said by many doesn't have any experience in trucks and yes, they are promoted by Essar group. Initial lot of 49T tractors were all sold to their contractors for moving Essar steel rolls. They dont know anything about trucks, I never rated them as a truck company. But still, at one point of time, they were giving tough times to both AL and Tata in the category they were strong - Multi axle tippers. They had clear USP of excellent gradeability and higher power to weight ratio and that made them stand tall among competition. And AMW soon had the big brand loyalty and any construction site cant miss an AMW. They were once the benchmark - Tata is using Cummins for years, but its only AMW that showed how best a Cummins engine can be used with right aggregates.

All went well and they were aiming for 10000 sales mark for the year 2012 after making an excellent sales during 2011. From then on, downturn started in sales, not just for AMW for everyone as well. This was the deepest ever, and AMW simply cant withstand the turnaround. They did launch various products across platforms but they simply didn't receive any response for a simple reason, AL and TML were so strong. Even in the segment of 49T, from where AMW started its journey, soon they were dethroned as and when competition responded. Today AL is the leader in this category and even when AMW was doing exceptionally well in sales, their share was limited only to tippers.

So as and when competition geared up in the name of Bharat Benz (Also other manufacturers started to respond quickly), which is currently doing very well in tipper segment, AMW lost its space and same way management was simply reluctant to manage competition. The American model which once sounded like an advantage was the disadvantage. Until otherwise the aggregate makes some development, they didn't have option to upgrade their products. When there is an issue, they didn't have the upper hand even to solve the problem themselves.

Also its network is now shrinking because viability is becoming a big question. Kamaz taking over AMW is on cards for more than several months and the deal is finalised to my knowledge. Kamaz Hosur factory is closed (simply because of labour issues) and now they plan to operate from Bhuj. I wish Kamaz All the very best as many of their products are way different in league, but still not getting the right traction in Indian soil.
AMW taught Tata what is the true potential of Cummins 6BT engine. Sadly the place they created in multi axle tippers is now being eaten up by Mahindra Navistar/Bharat Benz.
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Old 8th June 2016, 13:30   #18
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Default Re: AMW Trucks in deep trouble; majority stake up for sale

Originally Posted by autotranny View Post
Thanks for this update Ashley2 and quite informative; guess you are closely associated with a Commercial Auto Manufacturer in India. You have indeed brought in quite a contrasting view to others..
I am not associated with any manufacturer but being an auto journalist specific to CV will follow the manufacturers and major suppliers in Industry.
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