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Home arrow News arrow Business News arrow Kamaz Vectra Motors Ltd commences vehicle production at it's Hosur plant
Kamaz Vectra Motors Ltd commences vehicle production at it's Hosur plant Print E-mail
Written by Arjun   
Wednesday, 03 March 2010
Bangalore: Kamaz Vectra Motors Limited, a 51 : 49 joint venture between the Russian KAMAZ Inc. and Vectra Group, has commenced vehicle production at it's Hosur plant and launched the KAMAZ 6540 tipper model of GVW 31 T, an 8X4 dump truck. This is the first launch since the signing of the joint venture agreement between KAMAZ Inc. and Vectra group in Bangalore, in April 2009.

The total investment, so far, in this facility is 16 million USD. "In this fiscal year 2010-11, we hope to produce 1500 trucks and then we will ramp it up to about 7500 by 2013," said R. K. Rishi, Director, Vectra Limited.

"At the current moment we will receive CKDs from Kamaz Incorporated from Russia . Now we have 12 percent local parts. We have a plan for greater localisation and by the end of the next fiscal year we plan to reach at least 40 percent localisation," said Denis E. Trifonoff, Chief Executive Officer, Kamaz Vectra Motors Limited.

Currently the wheels, batteries, lights, rubber components, exteriors & interiors are procured locally. By next month the company is hoping to source the gearbox and engine locally.

One assembly line at the facility can accommodate up to 10 trucks. "Next fiscal year we plan to introduce three models more - long wheel base chassis 8X4 for superstructures and cargo, heavy duty tractor 4X2 and heavy duty tipper 6X4. We have started our production from heavy duty tippers 8X4," he said.

"One of the main reasons why we have chosen India as our production base for this region is that, in India it is possible to reach Research and Development centers for developing a new product. It is our main idea to create a 100% Indian product," added Denis E. Trifonoff.

"We plan our future investments according to the response of the market. Now we have invested completely in the production base. Further investments will be decided by the board of directors according to the situation,"  he said while speaking about further investments.

A Memorandum of Agreement was also signed by VRS Natarajan, Chairman and Managing Director, BEML Limited and Denis E. Trifonoff, Chief Executive Officer, Kamaz Vectra Motors Limited for mutual business co-operation and development, to capture the prevailing markets in Defence, Para-military and Police Forces as also in Mining sectors through Mining Tippers up to 28 Tons.

By this strategic alliance, BEML and KAMAZ VECTRA will develop and supply 4x4 Stallion Type of Vehicles for on-road application satisfying the specifications of Defence Forces, Paramilitary and Police Forces besides BEML working with KAMAZ VECTRA to source Chassis / Vehicle to market their BEML Tippers.

The MoA was signed in the presence of H.E. Rustam Minnikhanov, President elect and Prime Minister of Tatarstan republic on 25th February 2010 at Bangalore.

Sergey A. Kogogin, Chairman and Director General, Kamaz Inc said that this was a great contribution to developing economic ties between the two nations.

In 2007, KAMAZ decided to enter India's automobile market. In March 2009, the partners signed the memorandum of understanding for the creation of the KAMAZ VECTRA Motors Limited JV, with a capacity of 5000 vehicles per year.

Under the JV, the partners established a production and engineering centre for KAMAZ's business development in the left-hand traffic countries of Asia Pacific and Africa. This centre will develop new products taking into account the needs and preferences of local customers and will localize vehicle production. In the initial stage of the JV, it planned to assemble several models of vehicles equipped with side platforms and construction dumpers based on the KAMAZ - 6540 chassis with right-hand steering wheels, as well as the production of KAMAZ - 5460 long-haul tractors.

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