VE Commercial Vehicles to Initiate Marketing Firm in South Africa
Published On Feb 18, 2016
In what seems like an attempt to boost its exports to South Africa, VE Commercial Vehicles is apparently planning to set up a marketing firm in the African nation. The company is also exploring possibilities to set up assembly units in emerging economies to help its products to be more competitive with regard to sales.
The chief executive officer of VE Commercial Vehicles, Mr. Vinod Aggarwal, said, “At present we largely export to neighboring markets in Sri Lanka, Bangladesh and Nepal. Last year we ended up exporting 1300 trucks and buses to Africa but the major break will come once we commence sales in South Africa. We are in the process of setting up a marketing company and will shortly appoint distributors in South Africa.” He further added “Each country has certain requirements about indigenous content. We will start with CBU exports but are also looking into opportunities to start assembly operations. There are facilities which are available, we can collaborate and price our products competitively.”
In 2015, VE Commercial Vehicles sold 47,500 units and exported 5,900 commercial vehicles. According to the industry reports, more than 30,000 trucks and buses have been sold in South Africa.
The firm, apart from launching new range of Eicher Pro series of trucks, is currently developing the products as per the specifications required in growing economies. This will eventually help the auto maker to double its overseas business.