Kamaz Vectra Motors Ltd (KVML), a joint venture auto firm between Russia’s Kamaz and Vectra Group, is planning to invest $60 million in India in the next five years. It has also lined up a range of products to cater the needs of the local market.
During the Eastern India launch of Kamaz 6540 — a 31-tonne tipper targeted at infrastructure projects — the company’s chief executive officer Denis Trifonoff said, “In the next five years, we will invest $60 mn in the country. Out of which $20 mn has already invested for development of our plant in Tamil Nadu and for marketing purposes. The remaining money would be used for capacity building and for bringing out 100 per cent indigenous trucks.” KVML started operations in the country in 2009.
The company has also charted out a roadmap to introduce a range of products in 25 to 49-tonne category.
“KVML is targeting a niche segment of heavy duty vehicles with presence in upper and medium segments. We expect to sell nearly 1,000 trucks this financial year, which will be raised to 5,000 in next two years. Our products will be on 25, 31, 40 and 49-tonne category,” he said.
Currently, KVML has a facility in Hosur in Tamil Nadu, which has the capacity to produce more than 7,000 trucks per annum.
It also exports trucks to countries like Indonesia and Bangladesh.
“Kamaz wanted to be a part of the Indian market because, with the current economic situation no company in the world can sustain without India and China,” Trifonoff said.
Kamaz is one of the largest truck manufacturers in Europe and sells more than 60,000 trucks across the world every year.
On the firm's opportunity in Eastern India, Trifonoff said, “This part of the country tops our agenda, as a lot of mines and infrastructure works are happening here. If demand increases, we will also look for starting one more plant in India.” It has dealers in 15 states and has three dealers in the East.