Mahindra Navistar to make buses

Mahindra Navistar Automotives Ltd (MNAL), the truck JV between Mahindra & Mahindra and US-based Navistar International, has lined up plans to get into bus manufacturing in a year and a half. The JV will roll out its first truck on January 4.

Rakesh Kalra, managing director, MNAL, said, “We are planning a bus range, which will include low-floor buses in both diesel and CNG options. We are in talks with the Society of Indian Automobile Manufacturers to standardise the specification of buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme as different states have a list of different specifications, making the manufacturing process very complicated.”

With MNAL joining the race, the bidding for buses under JNNURM will become more competitive as the company is confident of garnering a high share, Kalra said.

With the industry volumes almost doubling in the commercial vehicle (CV) space for November, Pawan Goenka, president (automotive), M&M, considers this the right time to enter the market.

“The CV market will witness a robust growth in the next 3-4 years and we hope to garner a share of 13-19% in two-and-a-half years,” Goenka said. The venture will roll out trucks ranging 25-tonne multi-axle trucks to 49-tonne tractor trailors.

“It will take us 4 years to get the entire range of 25-49 tonne trucks in the market,” Goenka said. The trucks will be powered by a MaxxForce 7.2 litre diesel engine delivering a power of 210 HP, which will be a BS III compliant. Kalra said the company is prepared to switch to BS IV norms when they kick in by April 2010 and can also manufacture engines compatible with BS V norms.

Currently, the engines are imported from Brazil, but engine manufacturing has started at M&M’s Chakan plant, which will have an annual capacity of making 40,000 engines. “To begin with, the engine will have 71% localisation and by the next year it will touch 95%,” Pankaj Sonalkar, managing director, Mahindra Navistar Engines Pvt Ltd, said.

Kalra said the truck components and engines will be exported and that the company was studying various markets. “We have already exported truck components worth $25-30 million annually to the US, and in a year or so we will be ready to export engine and engine components, which will be sooner that exporting trucks,” Kalra said.

MNAL already has 40 outlets in place to sell trucks and plans to increase the number.
M&M has also delayed the launch of its light commercial vehicle (independent M&M product), which will be unveiled same time around as the trucks.

“Anything below 3.5 tonne will be an M&M product and those products above 3.5 tonne will be manufactured through the JV with Navistar,” Goenka said.