State financial support used by the company in order to certify its new product and increase its customer base with a higher level of exports.
“Altas komercinis transportas” is a well-known and highly regarded Lithuanian automotive company manufacturing mini- and midi-buses. They are one of the largest producers of various purpose vehicles in Lithuania, currently operating in 18 European markets. The company considers R&D activities and environmentally-friendly solutions to be the core of its business, as it is able to implement large-scale, complex projects in conjunction with international partners.
The company manufactures certified M2 and M3 class busses in the Mercedes Benz Sprinter base, which are certified and meet various requirements. By changing the basic technical characteristics declared by the base vehicle manufacturer, the buses will be able to meet customer needs. As a result, the aim of the project was to certify the production of modified (changed the main technical characteristics of MB Sprinter) M3 class minibuses. During the implementation of the project, brakes, steering systems, lateral stability, towing device, body strength, etc. tests were performed. In order to do so, company used the financial instrument “Expo Sertifitas LT” under the Lithuanian Operational Programme. The policy instrument is dedicated to encourage the internationalization of businesses by providing support for the certification of products intended for export Under this financial instrument, activities related to certification of products to be exported can be funded including the necessary tests and trials.
Resources needed
Project value was 24 750 EUR. 12 375 EUR was funded by ERDF.
Evidence of success
The company estimated that it was losing about 20 % of potential clients who would like to purchase the product, but they were not satisfied with the proposed standard characteristics of the base minibus. By offering them a newly certified product, the company is expecting to increase its export income by 17 %. As a result, the company managed to increase its revenues from around €20 million in 2015/2016 to around €30 million in 2017.
Potential for learning or transfer
Transport related businesses competitiveness in international markets and export development is a very important question in project partners regions. In this case, the project was funded by the financial instrument dedicated to supporting the certification of products intended for export, therefore it serves as an example of how the state can support business development.
Tags: Industry, Support
