Hyderabad-based firm may set up Chinese truck assembly plant by 2016. It will require 20 acres for setting up the plant/assembly line.

Chinese truck maker Sinotruk has joined hands with Hyderabad firm Overland Trucking Pvt. Ltd. for its India foray, a journey that also envisages setting up of an assembly plant next year.

Though the details, including the different trucks to be assembled are yet to be worked out, Overland Trucking is weighing options primarily between Telangana and Maharashtra for the plant. It is also looking at Tamil Nadu for the facility that is expected to entail an investment of Rs.100 crore to Rs.150 crore.

The final decision will depend on what the governments offer by way of incentives, Overland’s Rajashekar Ailneni said, even while appreciating iPass, a legislation enacted by Telangana to ensure speedy, time-bound clearances for industrial projects.

Mr. Ailneni, who was speaking to presspersons at the launch of Sinotruk’s two trucks for the mining sector on Wednesday, said formal discussions with Telangana Government officials were yet to be initiated, but the plan is to establish the assembly plant by 2016. Twenty acres would be required for the plant.

On the foray, Sinotruk president (Asia-Europe Division) Zhang Houqin said: “Without [presence] in the India market, you cannot be a global player.” Pointing to the huge potential, he said that with more GDP growth and new roads and highways taking shape the demand for the vehicles will only go up. Sinotruk, established in 1960, is a $15 billion firm with a capacity to make 3 lakh trucks, including 40,000 heavy duty trucks.

Mr. Ailneni said that the focus initially was on introducing Sinotruk products to the mining sector in India and followed by cargo trucks. Overland is eyeing sale of 400 units next year.

source: http://www.thehindu.com / The Hindu / Home> News> Cities> Hyderabad / by N. Ravi Kumar / Hyderabad – October 14th, 2015