Mahindra Plans to Invest INR 700 Crores in Intermediate Commercial Vehicle Segment
Published On May 30, 2016
India’s leading truck and bus manufacturer Mahindra Truck and Bus Division (MTBD), which recently displaced Tata Motors from the top position in small commercial vehicle segment, is now planning to take on the intermediate commercial vehicle segment as the market reports are suggesting decent growth in the mentioned segment. Mahindra is planning to invest around INR 700 crores in development of the vehicles ranging from 9 to 16 tonnes.
Talking about the new move, Mr. Nalin Mehta, CEO, MTBD, Mahindra & Mahindra Ltd., said, “We are taking aggressive steps to become a full-range player. The ICV segment is growing rapidly and we are focusing on this category with an investment of Rs 700 crore. We are developing ICV of capacities between 9 and 16 tonnes and the launch will happen in the next two years. The segment will have load cargo vehicles.”
He also threw light on the company’s performance in heavy vehicle segment. “The HCV sales have gained momentum in the country and grew by 34% last year while Mahindra’s sales in the category registered a growth of 64%. Currently, we have a market share of around 4% in the category and we are hopeful to double the market share in 2-3 years,” he said.
Currently the ICV segment registers a volume of 70,000 units per year and as it’s bound to increase in the next two years, the company doesn’t want to leave any stone unturned in order to succeed and make an impact over the market. For other segments, Mahindra is also planning to increase its authorized service center from 120 to 180 and dealership network to 85 from 73. The roadside assistance points would also increase from the current number of 2,990.