M&M to invest Rs 700 cr in ICV segment

Vijay C Roy

Tribune News Service

Chandigarh, May 24

Having made its mark in light and heavy commercial vehicle segment, Mahindra Truck and Bus Division (MTBD), a part of Mahindra & Mahindra Group, plans to foray into Intermediate Commercial Vehicle (ICV) segment. The company will invest Rs 700 crore in this segment which is likely to hit the Indian market in the next two years.

“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,” said Nalin Mehta, CEO, Mahindra Truck and Bus Division, Mahindra & Mahindra Ltd. 

Currently, the total volume in ICV segment is around 70,000 units per annum.

On being asked about the company’s performance in HCV category, he said, “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.”

Last year, the industry sold 1.80 lakh units in this category, while Mahindra sold around 5,700 HCVs last year. In the LCV segment, Mahindra has a market share of 8.9%.

In order to assist the customers, the company is also expanding its after-sales service and spares network. The company also plans to expand its dealership network to 85 from 73 currently and authorised service centres to 170- 180 from 120. It also plans to strengthen its roadside assistance service points from 2,900 points currently.

Mehta was in the city to launch new heavy commercial truck series under the brand name ‘Blazo’. The series includes haulage, tractor trailer and tipper and is equipped with the fuel smart technology.