Russian commercial vehicle maker Kamaz formed a joint venture with diversified conglomerate and $800 million Vectra group to manufacture heavy duy trucks in India. Vectra currently manufactures Tetra range of trucks in India which are widely used by the defense services in the country. The JV marks Kamaz’ entry in the Indian commercial vehicle market.
“The initial investment will be $13 million. Production of Kamaz trucks may start in Hosur by year end,” said Vectra Chairman R. K. Rishi to the reporters. “We believe that the Indian customers do not have access to the right product and we will address that issue,” he added.
The joint venture will produce about 5,000 trucks between two years and three years, which will be later increased to about 15,000 trucks. Kamaz Inc holds 51 per cent in the venture while the rest is with the Vectra Group, said the Kamaz Inc Director General, Mr S.A. Kogogin at the press conference of the joint venture.
Tatra Vectra and Kamaz have been working together for the past few months to identify suitable products for the domestic market. Tatra Vectra currently manufactures the Hemang dumper targeted at the mining and power projects but is considering bringing in a bus from Kamaz in chassis form, a small four-wheeler, Binggo and a cargo truck.