Ashok Leyland, the Indian based Commercial Vehicle (CV) maker, has planned to foray in the truck market of US with its European division Avia. The auto maker is looking for a local partner in the region, which can shake hands with the Indian brand and help it to expand brand presence in US.
The company is looking for a contract manufacturing, Joint Venture (JV), or even a marketing tie-up in US, which will help it to kick-off the operations in the region. The Chief Operating Officer of Avia, Thomas Jioieka, commented, “Even the option of 100 per cent owned company is part of the thought process. If everything goes well, we should start selling trucks in US by 2014.”
Interestingly, Avia, the Czech Republic truck manufacturer completely owned by Ashok Leyland from 2006, has been operating in US within a range of 7 to 15 tonne trucks. The auto maker is working in collaboration with an engine supplier, Cummins, which assists it to develop the powertrains that complies with the emission norms of US Environment Protection Agency.
Besides, Avia has signed an agreement with Smith Electric to deliver the body parts of trucks, comprising 250 cab kits and drive chassis in 2012 for the US market. Avia, which happens to be a light duty truck manufacturer whose products lies in a range of 9 to 12 tonnes, is now looking ahead to start working on 15-tonne and 18-tonne trucks in a association with its parent company's research and development facility in South India.
Reportedly, USA is counted among the biggest light duty truck markets of the world as annual sales of the region stands at 100,000 units, which can soon emerge as the largest export market for Avia. On the other hand, the European market is witnessing not-so-good times from past 3 to 5 years and thus, Ashok Leyland anticipates that marking presence in new markets like Singapore, Malaysia, Middle East Kenya and Latin America will probably assist its Czech division to attain break even by the end of 2013. Presently, Avia has a sales turnover of close to $ 22 million and delivers around 650 trucks yearly with exports in 35 markets. Considering future plans of the auto maker, it is eyeing to deliver 1,000 trucks in the current year and then mark a two-fold by the end of 2013.
