Mahindra Navistar Automotive is not a “price player”, but a performance player, said Mr Nalin Mehta, Chief Operating Officer of the company.
The company, a joint venture of Mahindra & Mahindra and Navistar of the US, today launched two trucks — MN 25 and MN 31 — in Chennai, priced at Rs 15.55 lakh and Rs 18.94 lakh. While these are “aggressive prices”, the company would like to position itself as one that will provide its customers good economics of ownership, he said addressing a press conference here.
Asked if Mahindra Navistar was not at a disadvantage over truck companies that have plants in States such as Uttarakhand, where manufacturing is incentivised with tax exemptions, Mr Mehta said Mahindra Navistar's plant at Chakan, Maharashtra, too enjoyed comparable fiscal benefits.
Mr Rakesh Kalra, Managing Director, Mahindra Navistar Automotive, said the company would complete the launch of its heavy duty range of trucks in 2011-12. These include tractor trailers and tippers of 40 tonnes and 49 tonnes vehicle-weight.
Mahindra Navistar manufactures vehicles above 3.5 tonnes gross vehicle-weight to 49 tonnes. Vehicle under 3.5 tonnes are produced by Mahindra & Mahindra. This year upto December, Mahindra Navistar sold 8,500 LCVs, including 4,000 buses.
The company launched this month its heavy duty vehicles. The missing gap in the portfolio — medium-duty trucks of 16-25 tonnes will be offered in 2012.
Mahindra Navistar Engines is eyeing non-automotive applications too.
Mahindra Navistar Engines Ltd, another joint venture of Mahindra & Mahindra and Navistar that produces engines for Mahindra Navistar Automotive, intends to cater to non-automotive applications also, Mr Kalra said.
He said the engines joint venture will eventually make products for applications such as power gensets. He, however, stressed that the group's main business is in the automotive sector and other activities are only on the periphery.