Companies

M&M to invest ₹500 cr in new products

| | Updated on: Oct 14, 2015
image caption

Aims to double market share within 3 years; plans export of electric car to the UK

Mahindra & Mahindra Ltd is looking to double its market share in the heavy commercials vehicles segment, to 5-6 per cent (from the existing 2.6 – 2.7 per cent) over the next two to three years, according to the company’s Executive Director & President (Automotive and Farm Equipments), Pawan Goenka.

The company will look to expand market share on the basis of its products, including new launches, as well as expansion of network.

“We are a relatively new player in the HCV segment. And in another two to three years, our target is to roughly double our market share to 5-6 per cent in this segment,” he said.

New launches According to Goenka, the company plans to grow its presence in the 5-16 tonne truck segment and has earmarked nearly ₹500 crore for development of new products. These new launches are part of its strategy to double market share.

While ₹300 crore is expected to be spent in the 9-16 tonne truck category; the remaining ₹200 crore will be marked for improvements of existing products in the 5-7 tonne (truck) segment.

“We do not have a presence in the 9-16 tonne truck segment; while in the 5-7 tonne segment our products are quite old. In another two and a half years the new range of 9-16 tonne trucks should be ready,” he said.

The company has envisaged a capital expenditure of ₹2,500 crore in the current fiscal.

Passenger vehicle According to Goenka, the company’s market share in the utility vehicle, small commercial vehicle, and pick-up segments stood at 35-36 per cent, 30 per cent and 70 per cent respectively.

“Our aim is to grow our utility vehicles segment to around 40 per cent in the next one year. In pick-ups and SCVs (small commercial vehicles), we would like to further strengthen our position in the market,” he said.

Goenka maintained that tractor sales fell by 20 per cent in the first half for the industry, including Mahindra; primarily because of poor rainfall. “Tractor sales in second half are likely to be better mainly because of the low base of the previous year,” he said.

Electric car Mahindra & Mahindra is also looking to start export of its electric car to the United Kingdom around March-April next year. This will be followed by exports to other countries in Europe around July. Mahindra already has a two-door electric ‘e20’ and is looking to develop a four-door variant for export purposes.

“We will start with exports to the UK in March,” Goenka said, adding that as of now it sells electric cars to Nepal only.

New facility to come up at Kharagpur

Mahindra & Mahindra will invest around ₹150 crore to set up a spare parts distribution facility at Kharagpur. The facility is expected to cater to the eastern states of Odisha, Jharkhand, Bihar and the North-East region, according to Pawan Goenka, Executive Director and President (Automotive & Farm Equipment). A similar facility will come up at Jaipur at an estimated investment of ₹150 crore.

Published on January 22, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you