Commercial vehicle manufacturer-Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between Mahindra & Mahindra Ltd (M&M) and Navistar Inc USA, is exploring opportunities to export heavy commercial vehicles(HCV) in Africa and South Africa. The company has plans to export HCV between 16 tonnes to 25 tonnes capacity, including tippers in next fiscal year.
The company has sold 7,000 commercial vehicles since June 2011 in domestic market. Speaking to Business Standard, Mahindra Navistar Automtives Ltd, Managing Director & CEO, Nalin Mehta said, "The product in HCV category meant for export is on testing stage and we are hopeful to commence exports from next fiscal. Initially we will export to South African countries and later on other parts of Africa."
He also mentioned that acquisition of Navistar Group’s stake by Mahindra & Mahindra in Mahindra Navistar Automotives Limited (MNAL) and Mahindra Navistar Engines Private Limited (MNEPL) would be completed within 2-3 weeks. It is worth mentioning that Mahindra & Mahindra will buy Navistar’s 49% stake in the joint venture MNAL and MNEPL for Rs 175 crore.
He also added that the Navistar Group will continue to provide technical support for developing engines. But as far as development of commercial vehicles is concerned, that would be doneby M&M.
On being asked about the expansion plans, he added, "We have already invested Rs 1,050 crore in the joint ventures, and further have plans to pump in Rs 200-250 crore over the next three years to add new products, variants and to upgrade the existing range of products. Also, a portion of fresh capital infusion will be utilized in capacity expansion.
Presently, the company has installed capacity of 40,000 of commercial vehicles per month. Also, it has 10 products in its portfolio and further has plans to add 3-4 products in next fiscal.
Mahindra Navistar which sold 7,000 commercial vehicles till now, is targeting 40,000 to 50,000 trucks in the next three to four years per annum. Meanwhile, the company launched new MN25 Tipper with bogie suspension for the Punjab market, which is considered as one of the potential market for the company.
Mehta said, "Punjab is very prominent market for us, We have clocked 100 plus HCV Sales in the Punjab market within a year of operation. The breakthrough segments for Mahindra in this short span of time have been Gypsum, Steel and Cement transportation/Cement Bulker, Construction Aggregates, Earth Moving, Container, Food transportation (Grains/Rice/Fruits), Heavy Machinery movement, Tip-trailers and Market load operations on various HCV platforms."
"The Punjab Commercial Vehicle Market constitutes around 7% of the Indian CV market and 22% of the market in North India. Mahindra forayed into the Punjab market with its HCV range in October 2011.
