Tata Motors expects 10% growth in four tonne LCV segment

Launching the new LCV in the Andhra Pradesh market today, Prem Verma, head of sales and marketing, LCV and SCV, Tata Motors, said that the company expected the new product to contribute 20 per cent more in volumes.

"We are selling close to 2,000 units of the previous version of the 407 and expect the new version to expand the market and bring in more volumes." Despite coming out with a new product, Tata Motors will continue producing the older model as demand remains strong.

The LCV and SFC division contributed close to 35 per cent in volume terms to the total sales of Tata Motors last year and this number is expected to go up this year. "Last year, we contributed 35 per cent in volume terms and 22 per cent in value terms and both these should go up due to the new launch," Verma said.

"We have sold 3,50,000 units of the 406 so far in the country since its launch 17 years ago and while we sell close to 2,000 units a month, competition is selling only about 100-odd units. Since the launch of the new 407 in November last year we have sold more than 2,000 units in the last couple of months," Verma said.

The new 407 comes with body-coloured bumpers and new-look grille, while the interiors of the cabin have been spruced up with additional features like magazine and cup and bottle holders etc, and is priced Rs 12,000 higher than the older version of the 407.

The new product also has a higher pay load capacity of 3.4 tonnes, which is 14 per cent more than on the older version and also promises 10 per cent more fuel efficiency.