Mahindra aims to double market share in CV; to invest Rs 700 cr in ICV

Thursday, Feb 16, 2017

Mahindra Trucks and Buses aims to double its market share in heavy commercial vehicle segment in India in the next two years with introduction of new intermediary commercial vehicle range and new set of small commercial vehicles, informed Nalin Mehta, MD & CEO at Mahindra Bus & Trucks in a telephonic interview with ETAuto.The company will invest about Rs 700 crore in the new intermediary segment products.

Currently, Mahindra has about 3.5 percent market share at 500-600 units of HCVs sold every month. It sells similar number of LCVs every month.

The company is soon going to enter intermediary - 8 tonne to 16 tonne vehicle category where Volvo Eicher Commercial Vehicles has been quite successful. Mahindra will also create a new segment by launching vehicles in 3.5 tonne to 7.5 tonne category.

Talking about the overall market condition in short term, Nalin Mehta said that in the first quarter of the next financial year production and sale of commercial vehicle may go down as people will go for a pre-buying in the fourth quarter of this fiscal due to upcoming BS-IV norm. India is going to adopt BS-IV norm across country from April 1, 2017."In general also fourth quarter always sees pressure in terms of sales," Nalin Mehta said.

While admitting that the forthcoming GST and Scrappage policy will change the market scenario, however, he refrained from commenting on it whether it will result in creating demand or not.

Mahindra currently sells about 12,000 units of commercial vehicles annually in India through its 80 dealerships. Mahindra has opened 7 parts plaza and aims to open 40 such centres in the coming few years, while it already has 120 authorised service stations.

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