Truck maker vows to increase local content

18/01/2008 -- 11:23 AM

Ha Noi (VNA) – Private truck maker Xuan Kien (Vinaxuki) will increase its localisation rate from 40 to 60 percent this year in a bid to cut production costs. According to Vinaxuki general director Bui Van Huyen, raising the localisation rate is the only way to limit price escalation as materials become more expensive. He said the move will help Vinaxuki to cope with the Government’s aim of increasing locally made parts in truck manufacturing to 80 percent by 2010. A ban on run-down and self-modified trucks took effect on January 1 which creates great conditions for local truck makers like Vinaxuki. ”The truck market as whole is expected to grow by some 30 percent this year,” he added. Vinaxuki hopes to sell 13,000 trucks this year by focusing on the increasingly popular light truck segment. The company plans to complete its equitisation in the first quarter of this year and will also inject 930 billion VND (58 million USD) into a new manufacturing plant in Ha Noi. Vinaxuki, which invested a total of 450 billion VND in manufacturing and distribution in 2007, sold 7,358 vehicles last year, a 207 percent increase on the previous year.-Enditem
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