Mahindra to invest Rs 500 cr on commercial vehicle development
Jan 27 2014 , New Delhi
The company, which will showcase two new trucks TRACO 49 and TRUXO 37 at the upcoming Auto Expo, plans to launch a brand new platform of intermediate commercial vehicles segment in a couple of years as it gears up to enter new segments like ICV (intermediate commercial vehicles) and MCV (medium commercial vehicle).
"Our aim is to become a formidable player in the Indian commercial vehicle (CV) space with a complete range of products across all segments. We will be investing a total of Rs 500 crore in the next two to three years on product development," Mahindra Trucks and Buses Ltd (MTBL) Director and Head Rajan Wadhera told PTI.
Of the total, Rs 300 crore will be in the development of a completely new platform for ICV (8-12 tonnes), which will have multiple applications.
"The ICV segment is a very promising one, it offers a lot of opportunity as much as there is competition. The size of the market is around a lakh units annually, which can grow up to 1.5 lakh units," he said.
A part of the money could also be spent on development of a MCV, although the segment is shrinking due to cost economics in India, Wadhera said.
"The remaining Rs 200 crore will be invested on strengthening our current product line-up of trucks and buses including the refurbishing of existing LCVs," he said, adding that there would also be a new 37 tonne CV.
At the Auto Expo, the company will also display TORRO 25 Tipper; LCV load products like Loadking ZOOM Container Truck and Tipper, and the Tourister COSMO Bus.
Commenting on the planned displays for expo to be held between February 5-11, he said: "It will give a glimpse to what we are planning for future, new products and efforts made to be a complete CV player with presence in all segments."
Mahindra & Mahindra (M&M) had partnered with Navistar Group for the CV segment, but in December 2012 the homegrown auto major agreed to buy out its US-based partner from their two joint ventures for manufacturing of truck and buses, and engines for Rs 175 crore.
Since then it has embarked on a solo journey for the CV segment, although the Navistar Group agreed to supply technology to it.