European company hopes to make inroads into heavy transport sector

Published: March 29, 2013
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To date, the company has sold around 50 units of civil trucks in Pakistan and 100 military trucks, but
that was at the end of the previous decade. PHOTO: AFP/FILE

To date, the company has sold around 50 units of civil trucks in Pakistan and 100 military trucks, but that was at the end of the previous decade. PHOTO: AFP/FILE

LAHORE: The potential in Pakistan’s transport sector has attracted many companies to invest in the country. Despite taking a dip in the past years, the scope is now steadily increasing, with another leading company – the MAN Group – initiating operations in Pakistan by introducing its sister company MAN Truck and Bus.

The MAN Group is one of Europe’s leading manufacturers of commercial vehicles, engines and mechanical engineering equipment, with annual revenues of approximately €15.8 billion and around 54,300 employees worldwide. MAN supplies trucks, buses, diesel engines and turbomachinery, as well as turnkey power plants, according to the company’s website.

The group’s other sister concern – MAN Diesel and Turbo – has had a presence in Pakistan since 2008, and both companies will now work under one roof with an aim to capture the entire segment in the coming years.

“This will be a test for the company. We know that Pakistan is an emerging market, and might be a corridor for Central Asian countries, so hopes for our success are high,” said Clemens Wolff, product sales and engineering manager, Middle East, while talking with The Express Tribune.

A possible corridor to Central Asian countries is the most attractive incentive for the company to invest in Pakistan, as they know that when Gwadar Port starts functioning, there will be a massive in traffic taking goods to countries through Pakistan. This will be the time when the company hopes to see a growth in sales.

MAN Diesel Turbo Bus and Truck has opened its first office in Lahore, and will open a second one in Karachi soon. The company is confident that they can deliver a world-class value proposition through MAN Diesel and Turbo Pakistan, backed by a MAN-trained service team, customer-oriented mindset, and an innovative brand heritage, to emerge as a leading player in Pakistan’s commercial vehicle industry.

“Our latest product – MAN TGS WW – would be new and quite costly for Pakistani logistic companies, but it is a long-term product with reliability and safety, horse power ranging between 360-480, fuel efficiency and a life of more than 15 years,” Wolff added. “In Europe, our mileage is around 33 kilometres per litre, but it depends on the drive. In Pakistan, we will educate and create awareness among our clients to better use the product,” he added.

The company initially targets selling around 100 trucks a year, after which it will decide further strategy. Till date, the company has sold around 50 units of civil trucks in Pakistan. It also has sold more than 100 military trucks, but that was at the end of the previous decade.

Currently, the company will import entire units, but if sales rise to their expectations, then they might involve locals in the manufacturing process and expand premises to assemble units in Pakistan.

The company is also keen to kickoff operations due to a lack of railway services in the logistics segment. The company said that the number of goods transported via railways was over 14 million tons annually before Pakistan Railways started imploding, and has now reduced to 1.5 million tons per year. “This has shifted the burden on road transport and enhanced the demand for trucks. We hope to take out our share of this,” he said.

The company will soon launch its bus in the Pakistani market to cater to difficulties faced by commuters while travelling on inter- or intra-city routes. The company also has a close eye on upcoming METRO bus projects. According to Wolff, this sector will have huge potential as the masses are still quite unaware of quality travelling via road networks.

Published in The Express Tribune, March 29th, 2013.

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Reader Comments (10)

  • Mar 29, 2013 - 9:25AM

    If the demand of such trucks is there, why not build them under licence in pakistan ???

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  • Dhaka
    Mar 29, 2013 - 2:26PM

    I think we have more market potential for these trucks than pakistan.Pakistan still remain a small market compared to emerging market like us.Logistical business in bangladesh is having high growth compared to negative growth in pakistan and MAN company can fully utilize our market potential.

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  • Jobar
    Mar 29, 2013 - 2:38PM

    Why the company invest in pakistan on a wrong time

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  • Jobar
    Mar 29, 2013 - 2:50PM

    @Pak Patriot:
    Few demands of trucks does not mean that they will start investing on plants and please remember that pakistan is basically a small market.

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  • Sam X
    Mar 29, 2013 - 3:39PM

    @Dhaka :
    Pakistan was the 2nd fastest growing economy in the world on 2005-2006.
    Further on plz check and compare Gdp per capita of your country with Pakistan and india and then try to talk with us.
    You 1 year growth does not mean that bangladesh became Britian. YOU are half of our economy with super poverty. If you dont believe it then please google it.

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  • Dhaka
    Mar 29, 2013 - 5:26PM

    @Sam X:
    Better to born as bangladeshi than a pakistani.You also depicts your faster growing economy only for one year 2005-2006.Our economy will overtake pakistan by 2020 and then you have to follow our path…

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  • Sajid Iqbal
    Mar 29, 2013 - 7:05PM

    @Dhaka:
    We are happy that Bangladesh is growing fast. There is no need to compete with us since there are better economies around the world to compete with. Every country has its unique problems which need to be tackled themselves. And we don’t need to follow Bangladesh. The only thing common in both countries is Textile Industry.

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  • Hasan Mehmood
    Mar 29, 2013 - 8:32PM

    @Dhaka:
    Have you compared the length of highways in Bangladesh and Pakistan? You better concentrate on ferries.

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  • antanu g
    Mar 30, 2013 - 12:16AM

    @Dhaka:
    why don’t you go and sell the idea to MAN… and why it can’t be both Pakistan and Bangladesh…? why… your mind is still foggy…

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  • Supersequel
    Mar 30, 2013 - 6:45AM

    @Dhaka, Pakistan, for a third world, has impressive highways and motorways. Even in the tribal north, the roads rival and surpass any of Bangladeshs highways.

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