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Commercial vehicle maker SML Isuzu today announced it will hike prices of its products including trucks and buses by 2 to 5% from next month, citing rising input cost.
Despite sluggish market, the company also said it will foray into higher capacity truck segment category by rolling out 13 tonne capacity vehicle.
The company said it plans to launch more trucks with bigger capacities in future to mark its presence.
The company, which is in light and medium commercial vehicle segment, today launched 'Super 12.9 XM' truck with payload of 8,500 kgs having a price range of Rs 13 lakh.
Prior to this launch, the company was present in 5 to 10 tonne capacity of trucks with 16% overall market share.
"Prices increase is inevitable but we try to contain as much as possible..The range of price increase will be 2 to 5% from next month," SML Isuzu Limited GM (Marketing), Anuj Sethi told PTI here.
The company has trucks in the price range of Rs 6 lakh to Rs 13 lakh while (small) buses are priced at Rs 8 lakh to Rs 15 lakh. Its luxury buses price range starts from Rs 37 lakh.
Asked about venturing into higher capacity segment in commercial vehicles, company's MD & CEO, Eiichi Seto said, "We are now looking to expand our product range. Today's product is 13 tonne truck and we have also plans to increase our product range."
The market for 13 tonne truck is estimated to be around 35,000 to 40,000 units per annum and the company expects to have 25%market share in this segment in next few years.
"We would like to have market share of 25%in this segment in 4-5 years," said Sethi.
Sethi said that the company would also like to enter higher capacity segment including 16 tonne and 25 tonne in trucks in future. "We want to launch trucks in 16 tonne and 25 tonne capacity where we do not have presence," he added.
However, Sethi said the commercial vehicle segment with market size of 4 lakh vehicles per annum has not performed well in current fiscal with general slowdown and rising interest rates badly affecting its market.
"As of now, commercial vehicle segment (in the country) is sluggish...There is no growth this year..(rather) there is a degrowth of 10% this year", he said adding that the commercial vehicle segment had grown at cumulative growth of 5% in last five years.
