Half a dozen private equity investors are believed to be in talks with Mumbai-based heavy commercial vehicle manufacturer Asia Motor Works (AMW) for up to $150m of investment.
IDFC Capital has been appointed to raise the fund according to a report in VC Circle, which will be used for growth and expansion.
AMW has seen truck sales increase by 53 per cent between April 2011 and January this year, and has increased its market share in the construction and mining sector of the heavy vehicle market.
The report quoted a senior analyst with a leading consultancy in India as saying the company’s commercial vehicle segment is poised to increase faster than the regular automotive industry in the next few years.
AMW was founded in 2002, and began commercial production six years later.
Emerging markets-focused private equity firm Actis entered the Indian automotive sector last December by investing $71m in component manufacturer Endurance Technologies.
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