Mahindra Trucks and Buses Ltd, part of the Mahindra group, plans to invest Rs 500 crore in 2-3 year on developing new products and strengthening of the line-up of commercial vehicles.
The company, which will showcase two new trucks TRACO 49 and TRUXO 37 at the upcoming Auto Expo, plans to launch a brand new platform of intermediate commercial vehicles segment in a couple of years as it gears up to enter new segments like ICV (intermediate commercial vehicles) and MCV (medium commercial vehicle).
"Our aim is to become a formidable player in the Indian commercial vehicle (CV) space with a complete range of products across all segments. We will be investing a total of Rs 500 crore in the next two to three years on product development," Mahindra Trucks and Buses Ltd (MTBL) Chief Executive -- Technology, Product Development & Sourcing) and Director and Head -- Rajan Wadhera told PTI.
Of the total, Rs 300 crore will be in the development of a completely new platform for ICV (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 a lakh units annually, which can grow up to 1.5 lakh units," he said.
A part of the money could also be spent on development of a MCV, although the segment is shrinking due to cost economics in India, Wadhera said.
"The remaining Rs 200 crore will be invested on strengthening our current product line-up of trucks and buses including the refurbishing of 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 expo to be held between February 5-11, he said: "It will give a glimpse to what we are planning for future, new products and efforts made to be a complete CV player with presence in all segments."
Mahindra & Mahindra (M&M) had partnered with Navistar Group for the CV segment, but in December 2012 the homegrown auto major agreed to buy out its US-based partner from their two joint ventures for manufacturing of truck and buses, and engines for Rs 175 crore.
Since then it has embarked on a solo journey for the CV segment, although the Navistar Group agreed to supply technology to it.
