Mahindra & Mahindra on Thursday completed the third phase of the rollout of its mini truck Maxximo by launching it in Chennai. Tamil Nadu is one of the largest markets for LCVs. The company claims to have garnered a market share of 23 per cent (minus the south market) in the 10,000 units per month mini-truck segment after the launch of Maxximo. The mini-truck segment is dominated by the Tata Ace. Rajesh Jejurikar, chief executive – automotive division, M&M, spoke to G Balachandar on the company’s plans. Excerpts:

n The light market is set for intense competition in the coming months with the entry of new players. What kind of growth do you foresee?

Normally, when a new player enters the market, it spurs growth and volume as the new entrant brings in new technology and offerings. We have seen that happening after the launch of our Gio (0.5 tonne) and Maxximo (0.75 tonne). The mini-truck category has been growing at a CAGR of 20 per cent and we see that growth rate continuing. We expect this category as well as those like pick-ups and three-wheelers also growing.

n What are the key growth drivers in the sub-3.5 tonne truck segment?

Obviously, there is a lot of economic activity and the hub-and-spoke model of transportation is working well and gaining momentum. Distribution chains, retail chains and ancillaries are developing rapidly and are creating demand for shorter distance transportation of goods. Thus, the overall economic activity is fuelling not only the sub-3.5 tone segment, but also the above 3.5-tonne segment.

n You indicated a multi-brand strategy in the sub-3.5 tonne category. Do you plan more products or variants in the segment??

Our multi-brand strategy is to leverage existing platforms. We are planning to come out with one or two variants of the Maxximo in the next 12-18 months

n What about the export potential of Maxximo and Gio?

South Asia could be a right market. We see a lot of potential in countries like Sri Lanka and Bangladesh. We could also evaluate other markets like Africa. But in the immediate term South Asia will be our key market.

n When are you likely to finalise your export strategy?

We have evaluated the market potential. But I can’t share any numbers or other information. We will be finalizing our plans over the next couple of months.