MAN AG prepares ground to sell speciality trucks in India

MAN AG prepares ground to sell speciality trucks in India
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First Published: Fri, May 09 2008. 11 44 PM IST
Updated: Fri, May 09 2008. 11 44 PM IST
Mumbai: Germany’s MAN Nutzfahrzeuge AG, Europe’s third largest truck maker, said on Friday it has set up a fully owned subsidiary in India, which will import completely built speciality trucks such as fire tenders, military vehicles and heavy-haulage lorries. The subsidiary, MAN Truck and Bus India Pvt. Ltd, will be based out of Mumbai.
The company aims to sell about 800 speciality trucks by 2010 through MAN Force Trucks Pvt. Ltd, its 30:70 venture with Force Motors Ltd, that makes 40- and 49-tonne haulage trucks and 25-tonne tippers at a plant in Pithampur in Madhya Pradesh.
“These are trucks that are not in the portfolio of the joint venture,” said Abhay Firodia, chairman and managing director of Force Motors.
The market size for such trucks is about 60,000-70,000 vehicles a year, according to Franz-Xaver Polster, managing director of MAN Truck and Bus. While the company did not specify the price, these trucks are sold at about €100,000 (Rs6.4 million) in Germany. In India, the trucks would attract combined duties of 35%, Polster said.
“We may also think of local assembly (for these trucks). While we have not yet decided, (partnering with) Force Motors would be an easier decision,” said Polster.
India is the world’s fifth largest truck market, where over 486,000 commercial vehicles were sold in financial year 2008. The market has been dominated by Tata Motors Ltd, which has a 60% share, but has increasingly attracted the attention of international players such as Daimler AG and AB Volvo over the past two years.
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First Published: Fri, May 09 2008. 11 44 PM IST