Mahindra truck and bus division is set to enhance its market share in the heavy commercial vehicle space over the next two years and add further impetus to its bus business.
Set to enter the Intermediate Commercial Vehicle (ICV) space, Mahindra Trucks and Buses Ltd has announced investments to the tune of INR 700 crores over the next three years. The company plans 11 different products in the 6-16 tonne category after which it will pay special attention to its bus business.
This fresh investment will be allocated to the company’s new 700 acre factory at Chakan near Pune. This plant has an installed capacity of 50,000 vehicles per annum while working on a three shift basis while it only utilizes 16% of this capacity as on date. The plant was built at an investment of INR 4,000 crores for the production of HCVs and LCVs.
After the roll out of ICVs is complete, the company will seek to enhance its presence in the bus segment. Mahindra currently operates in the small bus segment wherein it commands an 8% market share.
Enhanced market share is estimated in the future with new products being planned along with predictions of a favorable monsoon and roll out of GST being proposed. New export markets are also being looked into with the company already exporting to Nepal, Bangladesh and Sri Lanka while the company explores the possibility of exporting to Africa in the future as well.
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