Undeterred by industry-wide drop in commercial vehicle (CV) sales over the last few years, Mahindra and Mahindra (M&M) said on Wednesday that it will invest around Rs500 crore in its trucks and buses division over the next three years.
M&M will also introduce new products to strengthen its existing range of CVs.
Despite an accumulated loss of around Rs920 crore as at last fiscal, M&M is optimistic about the potential of the CV business.
“We are fully committed to our CV business with the objective of growing our presence in the Indian CV industry. We plan to invest significant resources over the next few years,” said Pawan Goenka, president – automotive and farm equipment sectors, M&M.
Out of the total planned investment of Rs500 crore, the company will spend around Rs200 crore initially on product upgrades and launch of variants; the rest will be invested in new products from the next fiscal, subject to securing mandatory approvals in time.
“Good monsoon this year will see some positive run of the industry. There is good traction in segments like ICV, which is more driven by upcountry consumption,” said Nalin Mehta, MD and CEO, Mahindra Trucks and Bus Ltd.
M&M intends to de-merge MTBL’s trucks and buses division and absorb it into itself to derive greater synergies. The company said that the de-merger process is expected to be completed by the end of this fiscal.
The company, which currently makes heavy-duty and medium- and heavy-duty trucks, is looking to launch products in other segments, including intermediate commercial vehicle (ICV) and bus segments.
As part of its plans to further strengthen its CV operations, M&M has also announced the re-branding of its heavy commercial vehicles. The multi-axle trucks will now be called Truxo, tractor trailers will be called Traco and tipper will be renamed as Torro.
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