Mahindra and Mahindra Looking at 50 Percent Growth in Heavy Vehicle Industry
Published On Jun 16, 2016
As India’s commercial vehicle industry is now booming with good sales numbers after witnessing a downfall for nearly two years, most of the major truck makers are hopeful for further growth, especially in the heavy vehicle segment. According to Mahindra and Mahindra, India’s leading small commercial vehicles manufacturer, approximately 50 percent growth in heavy vehicles sales can be achieved this fiscal year.
The company’s assumption is based on the various steps taken by government of India like announcement of new emission norms, Goods and Service Tax (GST) bill, re-surging mining segment, and positive movements in construction segment. At the launch of Mahindra Blazo range in eastern India, Mr. Nalin Mehta, Managing Director and CEO, Mahindra Trucks and Bus Division, said, “We are anticipating growth to zoom up to anything between 20 per cent and 50 per cent in the heavy commercial vehicle segment with the proposed cash for clunkers scheme, likely pre-buying before Bharat Stage 4 emission standards kick off in April and the expected implementation of the GST regime plus a good monsoon.”
Apart from HCV industry, which grew 32-33 percent last year, Intermediate Commercial Vehicle (ICV) segment is also looking at decent growth with boom in small distance transportation system, thanks to boom in e-commerce and internet based door-to-door services. With an already claimed top spot in SCV segment from Tata Motors, Mahindra has now planned to invest INR 700 crores in development of ICVs. As a part of this investment, Mahindra would be launching 11 new models in 8 to 15 tonne GVW category in the next couple of years.
Commenting on the ICV segment investment, Mr. Mehta said, “We feel the ICV category will grow because of demand led by the boom in e-commerce sector. Secondly, the hub-and-spoke model to be adopted by transporters for secondary transportation needs would grow with growth of small cities and implementation of smart city scheme.”
See Also:
CV Industry Expects HD Truck Sales to Cross 2.80 Lakh Units for FY2016-17
