Mahindra to spend Rs500 cr on developing light, medium trucks
29 Jan 2014
Mahindra Trucks and Buses Ltd, a part of the Mahindra group, plans to invest Rs500 crore over the next two to three years on strengthening its line-up of commercial vehicles, including developing new products.
The company will showcase two new trucks, TRACO 49 and TRUXO 37, at the Auto Expo in Delhi next month, and also plans to launch a new platform for producing intermediate commercial vehicles (ICVs) in a couple of years as it gears up to enter new segments like ICVs and MCVs (medium commercial vehicles), according to a PTI report.
"Our aim is to become a formidable player in the Indian commercial vehicle space with a complete range of products across all segments. We will be investing a total of Rs500 crore in the next two to three years on product development," Rajan Wadhera, Mahindra Trucks and Buses chief executive (technology, product development & sourcing), told the news agency.
Of the total spend, Rs300 crore will be for the development of a completely new platform for ICVs of 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 one lakh units annually, which can grow up to 1.5 lakh units," Wadhera said.
A part of the money could also be spent on developing an MCV, although the segment is shrinking due to cost economics in India, Wadhera said.
"The remaining Rs200 crore will be invested on strengthening our current product line-up of trucks and buses, including refurbishing 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 the to be held from 5-11 February, Wadhera said, "It will give a glimpse of what we are planning for the future, new products and efforts made to be a complete CV player with presence in all segments."
Mahindra & Mahindra had partnered with the Navistar Group for the CV segment, but in December 2012 M&M agreed to buy out its US-based partner from their two joint ventures for manufacturing trucks, buses, and engines for Rs175 crore.
Since then it has embarked on a solo journey in the CV segment, although the Navistar Group continues to supply technology to it.