Year 2010 assessed and plans for year 2011 introduced at a press conference

Monday, 11. April, 2011

Prague - On Tuesday 5 April 2011, a press conference was held in the Avia Ashok Leyland Motors (AALM) showroom. The company management presented their plans for the year 2011 and thoroughly analysed the company's business results on global markets in 2010.
 Twenty journalists from press agencies, daily newspapers, on-line news portals as well as professional journals from the field of freight transport and construction technology could direct their questions to AALM's Managing Director Marcus Pauels, Finance Director Tomáš Jiřička, HR Director Vít Šubert, Sales Director Radim Paiger, and Marketing Director and company Spokesman Michal Bačkovský.

After the opening address by Marcus Pauels concerning the current situation and the medium-term plans for the supply of AVIA trucks to individual markets (USA, Europe, Russia, Middle East), Michal Bačkovský presented last year's results and plans for 2011. After a discussion with the journalists, all the participants of the press conference were invited for refreshments. And what information were the journalists provided with?

In the first quarter of 2011, AALM sold 168 vehicles: 51 "Euro 5" trucks for European markets, 13 "Euro 4" trucks for the Russian market, 4 chassis for buses manufactured by the parent company, and 100 chassis for electric trucks manufactured by Smith Electric. As compared with the first quarter of 2010, when the company sold 102 vehicles, this represents a growth by 2/3!

The announcement that AALM plans to sell 1000 trucks in 2011 also gained a considerable attention, as  only 448 trucks were sold in 2010. AALM plans to sell 300 trucks on European markets and 500 chassis with cabins on American and British markets for the electric truck manufacturer Smith Electric. AALM also plans to sell 100 trucks in Russia, where it opened a sales office at the end of the last year. As regards new projects (such as Middle-East markets, bus chassis, and others), the company expects to sell 100 trucks or chassis.

On the West-European market, AALM is planning to build a new sales network in Great Britain this year and prepares to launch its sales in France. The company also wants to restructure its sales network in Poland. AALM has recently entered the Middle-East market at the occasion of the commencement of operation of the assembly plant of its parent company Ashok Leyland in the Ras-al-Khaima emirate in the United Arab Emirates. "The Czech and Slovak markets remain crucial for us. However, at the same time we invest in our sales network in other European countries," said Managing Director Marcus Pauels. AVIA is also preparing trucks with double cabins and four-wheel drive trucks - this new model will be introduced at the upcoming IBF building trade fair in Brno (12-16 April 2011).

According to Marketing Director Michal Bačkovský, the company's success is based on the global homologation of the "Euro 5" series and on the complete range of engine types offered on the emerging markets. "We can offer our Euro 5 engines to our European customers, Euro 4 or Euro 3 to our Russian customers, and Euro 2 to our customers in the Middle East. Another significant aspect of our success is the comprehensive customer services, including our own Avia Financing programme and our Avia Service+ programmes."

Since 2006, Avia Ashok Leyland Motors s.r.o. has been part of the Hinduja Group alongside with the second largest automobile company in India - Ashok Leyland. Thanks to the support of a strong concern (9 production plants; operation in over 30 markets on three continents), in the recent years, AVIA has started the process of returning onto world markets, including product portfolio expansion. Production of AVIA Ashok Leyland Motors covers the class of motor trucks of total weight from 6.5 to 12 tons. It has become successful with its customers for its high durability; perfect driving manoeuvrability; variety of versions; and low operating costs of its vehicles. In 2010, the plant in Letňany produced 479 vehicles supplied to markets in Europe, USA, and Asia. Last year, Avia Ashok Leyland Motors s.r.o.’s earnings for the sales of goods and services reached 337 million CZK (increasing by 32 % compared to 2009). On 31.12. 2010, the Company was providing employment for 208 people.

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