AMW TIES UP WITH STATE BANK OF INDIA CONFIDENTLY ON THE MOVE. AMW Motors Ltd. SUNRISE AUTOMOTIVE APPOINTED DEALER AT MEHSANA, GUJARAT SEPTEMBER 2013
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1 SEPTEMBER 2013 I N S I G H T NETWORK EXPANSION SUNRISE AUTOMOTIVE APPOINTED DEALER AT MEHSANA, GUJARAT AMW TIES UP WITH STATE BANK OF INDIA CONFIDENTLY ON THE MOVE AMW Motors Ltd.
2 T H E D R I V I N G F O R C E Dear Friends, It's not the easiest time for business, but we at AMW strive to earn our customers' respect and satisfaction every day. We are constantly on the look out for ways of improving our product offering, innovating to bring better results for your business and increasing our reach across the country. A significant success in our efforts to make available to you finance virtually at your doorstep, is our agreement with the State Bank of India for the financing of sales of the entire range of AMW Medium & Heavy commercial vehicles. This national level tie-up through State Bank of India's network of over 13,000 branches across the country will be of great help to you. We announced the opening of a new dealership, Sunrise Automotive at Mehsana in Gujarat State, taking our network of dealers close to 125. With this we have over 1500 touch points in India making for a nation-wide presence. We believe that the best time to develop products and improve product performance is now and besides introducing 15 new vehicles and 22 variants, we can confidently say that we have improved fuel efficiency by an average 10% across our range. We have maintained our reputation for dedication and sincerity to our customers and every one of us is committed to be an active participant in your success. Thank you. Anirudh Bhuwalka MD & CEO PAGE 2
3 A S T O R Y AMW TIES UP WITH STATE BANK OF INDIA FOR VEHICLE FINANCING AMW announced that the Company had entered into an agreement with the State Bank of India for the financing of sales of the entire range of AMW Medium & Heavy commercial vehicles. This national level tie-up through State Bank of India's network of over 13,000 branches across the country will provide a great fillip to AMW' sales. According to the MOU, SBI branches will offer competitive rates of interest to customers for the purchase of any model from the M&HCV range of AMW vehicles. The facility will be available on Fully Built vehicles, Chassis as well as bodybuilding. The agreement also provides for loan support for registration, taxes and Insurance. Existing customers of AMW as well as First Time Users (FTU) can avail of the facility SBI BRANCHES ACROSS INDIA AMW TOUCH POINTS EASY AND QUICK FINANCING OPTIONS Mr. A. Ramasubramanian, President AMW Motors Ltd said SBI's vast urban and rural network will enable truck operators from all over the country to access easy and competitive financing. We will organize joint customer meets with bank officials and work closely with them to ensure that the benefits of this partnership will be made available to all commercial vehicle buyers. A. Ramasubramanian - President AMW Motors Ltd and Ms Saloni Narayan SME Business Unit - SBI signing the MOU in presence of Sajal Gupta - CFO AMW Motors Ltd. PAGE 3
4 I N S I G H T AMW CONTINUES EXPANSION OF ITS DEALER NETWORK Sunrise Automotive appointed Dealer at Mehsana, Gujarat Mehsana, April 23, 2013: India's third largest heavy commercial vehicle manufacturer, AMW Motors (AMW) expanded its presence in the important Gujarat market with the opening of its newest dealership, Sunrise Automotive Pvt. Ltd. in Mehsana, on April 23, Sunrise Automotive will be responsible for sales and service for the entire range of AMW vehicles in the territories of Mehsana, Banaskantha, Palanpur and Himmatnagar. Shri. Rajnikant Patel, Home Minister Gujarat Government, inaugurated the comprehensive dealership in the presence of Mr. Anirudh Bhuwalka, M.D. and CEO and a large number of customers and other dignitaries. Mr. Ashok Chaudhary, M.D. Sunrise Automotive and past Mayor of Mehsana, welcomed the guests. CONTINUE ON PAGE 5 PAGE 4
5 I N S I G H T Sunrise Automotive appointed Dealer at Mehsana, Gujarat CONTINUE FROM PAGE 4 The region is among the largest milk producing regions in the country and a major user of milk tankers. Besides, Mehsana is an important oil exploration and extraction centre of ONGC. There are also a number of cement plants and mining and quarrying hubs in the region. Speaking at the opening of the new dealership, Mr. Anirudh Bhuwalka said, The expanded dealer network will add to the already strong presence in Gujarat and Western India. We are pleased to welcome Sunrise Automotive to our family. Our dealers are capable of delivering superior value and unparalleled customer service. We are confident that we will be able to offer our customers the highest standards of quality and efficiency and bring in a totally modern purchase and ownership experience. The expanded dealer network will add to the already strong presence in Gujarat and Western India. PAGE 5
6 I N T E R V I E W RARING TO GO Keeping its core DNA as manufacturer of robust heavy commercial vehicles intact, AMW has started ensuring that customer requirements are met too. Starting off as a niche player, the company now wants to gain a 10 percent market share and increase its customer base. Pradeb Biswas of Auto Monitor spoke to A. Ramasubramanian, President, AMW, about the company's plans to become the customer's preferred CV maker. We are now trying to move into specific applications and convince customers about the superiority of our products which lies in their ergonomics, performance and economy. These three are the DNA of our new range of products that we have. EXCERPTS FROM THE INTERVIEW: Our goal is to gain market share across India. The real job now is to reach a customer base four to five times our existing base. We are now trying to move into specific applications and convince customers about the superiority of our products which lies in their ergonomics, performance and economy. These three are the DNA of our new range of products that we have. We have kept the core DNA intact by ensuring that robustness is not compromised. Our off highway performance gives us the client base and also 'word-of- mouth' publicity helps us. What we are interested in is to establish our full range as the preferred truck maker and we believe the numbers will grow. Each year after year we have been achieving 100 percent growth. I believe we have the potential to double in a very short period of one or two years. The growth will be significant in terms of percentage. But what we are really looking forward to is 10 percent and then 15 percent growth in market share which will take us to making 45,000 trucks. Today we have a touch point across every 100 to 125 odd kilometres across peninsular India and around 200 odd kilometres in the northeast region. In the worst case, we can reach any truck, which has broken down in a period of two to three hours. We have developed a web based application, which shows customers the touch points on their route and the helpline number. The calls made to our helpline are addressed by our internal call centre and not outsourced. PAGE 6
7 AMW APPOINTS R N RAO AS DIRECTOR, SALES AND MARKETING I N T E R V I E W AMW Motors (AMW) has appointed Mr. R N Rao as Director, Sales and Marketing. He will be responsible for marketing, sales, service and product development. He will be based at the Company's corporate office in Mumbai. Mr. Rao is a Mechanical engineer from V J T I, Mumbai and holds a Post Graduate degree in Marketing Management from Jamnalal Bajaj Institute of Management Studies, Mumbai. He began his career with Lucas TVS and subsequently joined Ashok Leyland, where he has worked in several management positions in the Company. He has over 30 years experience in the industry and has worked in several regional and national assignments. Q. What will be the impact of the current downturn in the industry when things start looking better? The CV industry volumes are down by over 28% on YOY basis, but we expect that with good monsoons and the festive season, the second half will be better. However, there are still some dark clouds like increase in repossession by finance companies, increase in operating costs due to rise in prices of diesel, core sector growth issues etc, but as the economy starts looking up, the sentiment will get better. Q. What have been the fundamental drivers of change in the industry in the last five to seven years? One of the significant changes has been the hub and spoke model where long distance travel between major cities is supplemented by transportation of goods between cities and towns and last mile movement within cities. Heavy vehicles are becoming more and more productive resulting in lower operating and total ownership costs. Reliability is also a very important factor as operators cannot afford to have high downtime and poor utilization of the asset. AMW has focused on these aspects right from the beginning and add to this driver safety and comfort, we believe we are well positioned. Q. The biggest issues facing truck buyers are power, fuel efficiency and total cost of ownership. How does AMW address these concerns? Yes fuel and tyre contribute approximately 60% to Total Cost of Operation (TCO). We at AMW have always been focusing on customer s profitability by introducing tailor made products to suit the application and to lower the total cost of operation (TCO). Q. How are your tippers and other special purpose vehicles different from similar products in the market? As I have already mentioned earlier, our tippers are known for reliability, TCO and ruggedness. Our tippers are built in-house and while we sell large volumes in several segments, we specialize in building vehicles that are application specific. We command at least 25% higher resale value for our tippers which speaks for itself on the product superiority. Q. Finally In an industry of extreme business cycles, how do you cope with uncertainties with actions that are in your control? We will focus on market penetration with strategies to handle product as well as geographic cyclicality. We have enough head room to grow and believe that we are less vulnerable than large volume players. We had superior products, adequate sales and after market coverage and our strategy of addressing segments where we have proven strengths has been effective. Our vehicles have proven their fuel efficiency and higher load carrying capacity. We are confident that we in the right direction and addressing present as well as future needs of the industry. BUILT TO WIN AUGUST SEPTEMBER PAGE 7
8 S U C C E S S S T O R Y CONFIDENTLY ON THE MOVE Gurudev Impex, based in Ludhiana, manages a tough business involving shipment of Dry Port goods which means the Company has to handle liquids, dry bulk cargo, containerized and noncontainerized cargo and general goods. That is the main reason that Gurudev Impex has mixed fleet of tractor-trailers and haulage vehicles. Timely maintenance and use of genuine parts is one of the major reasons that my vehicles are fit. Mr. Pradeep Chaudhary Gurudev Impex The business demands high reliability of vehicles, maximum up time driver comfort and satisfaction and of course productivity and profitability. And that is the main reason Mr. Pradeep Chaudhary, the owner of the Company has consistently chosen AMW vehicles for his fleet. Close to 40 of his 50 vehicles are from the AMW stable Twenty 4018 TR, fifteen 2518 HL and three 2516 HL. He has been consistently opting for AMW vehicles to augment his fleet. For Gurudev Impex, the key to success is good planning, an eye on costs and a good partner. AMW helps in all three areas. Excellent service back up, low maintenance costs and design modification to suit the needs of the business have given AMW an edge in this highly competitive market. 'Timely maintenance and use of genuine parts is one of the major reasons that my vehicles are fit'', says Mr. Chaudhary. In the ultimate analysis, our trucks have to deliver value to our business and keep our customers happy. We get a lot from AMW and hope to continue this relationship for mutual benefits. Our trucks are capable of running with low downtime, high efficiency and great degree of safety and driver comfort. At AMW, commitment stands behind our products. AMW has customized its AMC package to Gurudev Impex covering tracking of each vehicle for scheduled service, genuine parts, lubes and critical care. All 38 vehicles in the fleet are covered under the AMC. Mr. Chaudhary is a qualified Chartered Accountant and has gained an enviable reputation in the industry by his dedicated approach to customer service and a strict eye on quality and delivery. The first vehicle was bought in 2008 and five years and 38 vehicles later, AMW is happy that we are able to keep the smile on Mr. Chaudhary's face. PAGE 8
9 AMW and its dealers strive to stay close to our customers. Our vast network of showrooms, workshops, service outlets, mobile vans and call centres ensure that we are always with you. THE AMW DEALER NETWORK CONTINUES TO GROW WITH OVER 123 DEALERSHIPS ACROSS INDIA. AMW Motors Ltd. 7th Floor, Tower-1, Equinox Business Park, Peninsula Techno Park, Off. Bandra Kurla Road, L.B.S. Marg, Kurla (West), Mumbai , India. Tel.: + (91-22) Fax: + (91-22) sales@amwasia.com TOLL FREE HELPLINE : AMW Motors Ltd. AMWMotorsLtd
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