[Rahul Rao]

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.

Rahul

[kunaldhami]

Originally Posted by Ashley2

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.

[Ashley2]

Originally Posted by autotranny

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.

[ranjithrnath]

What is the status of this company now? AMW had a sales cum service center in Edapally, Kochi and that has been closed since a few years.

I do not see any AMW tippers/trucks on road now in Ernakulam district. Perumbavoor had quite a few 25T tippers. All of them seem to have vanished suddenly from the roads in Ernakulam district.

Can someone throw more light on the fate of the company now and about the service backup for those trucks sold.

[kunaldhami]

Originally Posted by ranjithrnath

Can someone throw more light on the fate of the company now and about the service backup for those trucks sold.

I think company is closed but all spares for AMW trucks are freely available in aftermarket so, maintenance is not an issue.

[007 Bond]

The company is in the final leg of getting a JV partner. Its a financial partner mostly from China. If all goes well we can have an announcement by the end of April with a possible JV by the end of June & a possible start of production by the end of October.

Fingers crossed.

[ranjithrnath]

Originally Posted by 007 Bond

Company is in the final leg of getting a JV partner. Its a financial partner mostly from China. If all goes well we can have an announcement by the end of April with a possible JV by the end of June & a possible start of production by the end of October.

Fingers crossed.

Weren't they having a partnership with Chinese firm FAW for manufacturing the cabin and other aggregates?





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[007 Bond]

Originally Posted by kunaldhami

I think company is closed but all spares for AMW trucks are freely available in aftermarket so, maintenance is not an issue.

Originally Posted by ranjithrnath

Weren't they having a partnership with Chinese firm FAW for manufacturing the cabin and other aggregates?

Ya they were but that was restricted to cabin supply only, like other aggregate suppliers Cummins for the engine, Meritor for axles, etc. !

This is a capital infusion in exchange of controlling stake in the company. They were the first to go with SDIR, but with NCLT in picture SDIR took the back step & had to rego by NCLT procedures which has delayed the JV, also they group companies (Essar oil & steel) had to go through, the result of the same was going to have a major impact on AMW. As now all matters are clear I am expecting a clarity of closure or re-start max by mid to month end.

Let's see what happens next.