VE Commercial Vehicles, an equal joint venture between Eicher Motors and Volvo Group, intends to roll out its new VE series heavy duty commercial vehicles in select locations instead of pan-India launch as it seeks to ensure that the business fundamentals are in place while introducing the vehicles.

“We particularly focus on very selective locations where we are able to get the right infrastructure, and financing from financiers. We are rolling out in geographies one by one and are not pushing the vehicles in the entire country as of date,” Siddhartha Lal, managing director and chief executive officer of Eicher Motors told an investors conference call.

While the company, which posted strong numbers (in 5 tonne & above category) for the January-March quarter, is reported have gained market share in 5-12 tonne segments during the period when compared with corresponding quarter previous year, it claims to have generated deep interest and strong demand for VE series of heavy duty vehicles, unveiled at the Auto Expo in January 2010, in the markets where the series has been rolled out.

“We had a very good start to our new VE series of trucks and buses. We have been rolling it out in various locations. We are still focusing on very few locations. However, we have experienced initial success,” said Lal.

In January, the company unveiled the VE Series, which is a full upgradation of its entire heavy-duty range of vehicles. The new series spans all the existing products such as 16 tonne 4x2, 25 tonne 6x2, 31 tonne 8x2, 16-tonne 4x2 tipper and 40 tonne 4x2 tractor. “Our focus, is on 8x2 and we are pushing very hard. We have a very good brand and position in the 8x2 and it is also a higher value added segment. We are also looking at Terra 16 which is our 4x2 tipper,” said Lal.

In the third quarter of the present calendar year, the company will launch its 25 tonne 6x4 tipper as it expects the tipper segment to do well due to the construction boom.

Lal also admitted that tipper market was marginally shifting towards 6x4 segment. The tipper market was estimated at 34,000 units in 2009-10, when compared with 56,000 units in 2007-08 and 38,000 units in 2008-09. However, the sales have started zooming and in March sales stood at 4,800 units. Going forward, the tipper volumes are estimated at 5,000 units a month in view of growing construction activities.