Yesterday, KamAZ presented its new truck models at the Auto Expo exhibition in New Delhi. Already this year, KamAZ will begin assembling, selling and providing services for its vehicles in India jointly with Tatra Vectra Motors, its local partner. According to KamAZ 's Denis Trifonov, Indian plant will become the biggest production of Russian trucks outside Russia.
India is one of the most dynamically developing economies in the world, with a population over 1 billion people and country's truck market is a place of competitive struggle. Many companies from Europe and China already work here, along with local producers. KamAZ, who offers the Indian market two models of trucks so far, regards the country as a strategic business destination.
KamAZ trucks assembled in India are expected to be cheaper than their Western competitors. At the first stages of production, about 10 percent of spare part will be made in India, and after two or three years their share will rise to 30-40 percent. 74 percent of the joint venture will be owned by KamAZ. After five years, the Hosur-based plant is expected to make 5 to thousand vehicles a year.
While many international car makers are opening production facilities in Russia, KamAZ is expanding abroad. KamAZ trucks are already assembled in Kazakhstan, Ukraine, Azerbaijan, Iran and Pakistan (assembly lines in Poland, Hungary and Ethiopia have been closed, and KamAZ also withdrew from to joint projects with China). A second KamAZ facility is to open soon in Pakistan.
KamAZ CEO Sergei Kogogin seems to have plans to make his company an international business. He has managed to lead KamAZ out of the deep crisis and achieved sustainable growth (about 30 percent per year).
With its reliable, high quality product and reasonable pricing, KamAZ has all the chances to conquer a segment in Asian market.
Denis Kvasov
Photo: kamaz.net
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