Konstantine Breze, Regional Director, Kamaz Foreign Trade Company, for Asian and Pacific Countries Sales, has said that KAMAZ Inc. is the largest vehicle building plant of Russia and among top 10 world truck and diesel engine manufacturers. Its production facilities allow producing 50,000 trucks and the same number of engines per year. The plant has the most advanced updated technological facilities for production of vehicles and its components.
“We had started our work in Pakistan about four and half years ago with our business partner M/s Bibojee Services (Pvt) Limited. Finally we delivered some CKD and assembly was arranged in their factory. And we used the opportunity provided by ITIF, Auto & Transport Exhibition at Karachi Expo Center, for launching of our Kamaz-6460 Prime Mover. This product is most competitive in Pakistan market and we think this is the right time to enter the local market. That’s why we have finally managed to assemble our vehicles here. We will try our best to be successful, because we are cheaper in price than our competitors in Pakistan,” he said.
“We are already exporting this product to about 30 other countries and also trying to enter Indian market like Pakistan. We will provide our technology at Ghandhara Industries assembly plant and bring some more products in Pakistan. We have already achieved 40 percent deletion of Kamaz parts in Pakistan according to local government’s demand,” Konstantine Breze informed.
To a question about production target he stated, “During first year of production we have planned to make at least 200 Kamaz vehicles in Pakistan that would be enhanced up to 2000 gradually. After seeing great demand we have decided to launch Kamaz Buses later in the month of July this year.”
This is my first visit to Pakistan, I find people here very friendly and the city is beautiful. We are planning to visit Karachi very frequently. Initially we have appointed three staff members here to supervise assembling, training and maintenance of Kamaz Trucks.
One of the main reasons for popularity of Kamaz products was the provision of good after sales service and spare parts supply. In Russia we are producing a total of forty to fifty thousand vehicles per annum, and every fourth vehicle is being exported. We are manufacturing only commercial vehicles ranging from eight to sixty tons capacity. These are medium commercial vehicles to heavy commercial vehicles. Kamaz truck has Euro 2 engine, being a modern and up to date truck. It is very competitive with European and Japanese brands. It could run in any climate having temperature from 0 up to 55-C.
Kamaz had started production in Russia in 1972 we have acquired foreign collaboration from various advanced countries and all leading manufacturers of automobile in the world. Pakistan market is very promising and HCV demand is increasing, therefore we had decided to enter this market. In future there is a possibility that we may import auto parts from Pakistan. We will see the vendors who were having competitive rates and good quality standards, and then decide to import their parts. Because Kamaz is working democratically and looking into such ways of cooperation. Cost of production in our region is about 20 to 30 percent higher than in Pakistan. Now banking communications in Russia is very good and we don’t find any problem in dealing through banks with Pakistan.
The soviet government had created Kamaz Inc. in order to meet truck requirements in private sector as well as the army. Now it is a private joint stock company having 13% shares of Russian government, 5% for government of Tatarstan, while remaining shares were divided among various local and international shareholders. Its capital investment is around $ 300 million. Ten years ago we had invested more than $ 200 million dollars in modernization of our production to make it more advanced. We pay much attention to our technical development. In Kamaz Inc. we have our own technical research center, our own designers to evolve complete original design of truck. We invest huge money in buying new equipment from Japan, USA and Germany. We also spend money in investigation of the markets and pay much attention in advertising campaign to make Kamaz product more recognizable in all countries. You know the Russian products had an image that these were good but not comfortable and may be not too useful. But we have changed this concept because there are great changes in Russia and its products are now according to European standard.
This company produces more than 150,000 trucks per year. Presently in more than 80 countries in all continents of the world Kamaz trucks are found. We are the official suppliers of defense ministries in countries like UAE, Egypt, Saudi Arabia, Qatar, Bahrain, Hungary, Poland, Vietnam, Laos, Korea, Sudan, and Ethiopia etc.
To another question the Regional Director of KAMAZ said, “We have paid much attention to our launching and advertising campaign, market joining campaign and so on. This exhibition was the first official step we took together and came to the market in order to see our preparation and customer’s attitude. The potential customers found our product satisfactory, it is suitable for them. And we hope in the near future the potential customer becomes regular. Initially we are producing about 20 trucks a month.”
We have successfully working plants in Vietnam, Kazakhstan, Ethiopia and going to establish another plant in Poland for supplying in Western Europe and USA as well. Now we have started paying attention to developing countries like Pakistan where economy is developing very fast that causes huge transportation requirements and indeed our trucks are best in this market, Konstantine Breze concluded.
-Published on page#-18-19-20 March-2006 edition of MOBILE WORLD Magazine
Bibojee launches KAMAZ Truck in Pakistan