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MAN Trucks to discontinue India operations, will offer support to existing customers for five years

Team OD  | Updated: August 08, 2018, 10:20 AM IST

MAN Trucks, owned by the Volkswagen Group, has decided to discontinue its operations from the country. This update comes after the falling demand for the premium truck rage in India. The MAN truck range was being manufactured at the company's production plant located at Pithampur, Madhya Pradesh and has been in operation for 12 years now. This plant with an annual production capacity of 10,000-12,000 units will be up for sale shortly. MAN states that the brand will sell the plant to a buyer who can employ its current workforce.

"The company has decided to restructure the India organisation. This decision is based on MTB's global strategy to focus on premium segment markets. The manufacturing, sales, and exports of the CLA range will be stopped after the existing customer orders are completed." mentioned the Board of MAN Truck & Bus AG (MTB)

MAN mentions that the India division will become an R&D Centre for Excellence supporting global projects

The German truck brand had formed an alliance with Force Motors in 2006 to manufacture and sell the premium range of trucks in India. However, in 2011, Force Motors exited the JV by selling its stakes and letting MAN Trucks operate independently in India. The company had already halted new product development and model upgradation. Considering the fact that India adopts the stricter Bharat Stage VI in two years from now, the manufacturing and upgradation cost that will be incurred by the automobile manufacturers will be on the higher side. It is said that a truck priced at Rs 20 lakh will get more premium by Rs 3.5 lakh.

MAN mentions that the India division will become an R&D Centre for Excellence supporting global projects. Additionally, the brand will offer support to the existing customers for the five years.

"MAN is extending support to all employees impacted due to this development. The India management has taken appropriate measures to support the affected team members during the transition. We are also engaging with our dealer partners, suppliers, and other business associates to support them during this transition", stated MAN.

Source: Moneycontrol


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