Mahindra ventures into commercial segment1 min read . Updated: 04 Jan 2010, 11:30 PM IST
Mahindra ventures into commercial segment
Mumbai: Mahindra Navistar Automotives Ltd, a joint venture of Navistar Inc.and Mahindra and Mahindra Ltd(M&M), plans to launch seven new medium and heavy trucks in 2010.
The company on Monday unveiled its 25- and 31-tonne models, which it will start selling in the current fiscal year ending 31 March, officials said at the launch.
Anand G. Mahindra, vice-chairman, M&M, told the media that the company’s venture into the heavy and medium lorry space is a “big move for the group".
“This launch is a major step towards fulfilment of the commitment we made in 2005 to develop into a full-line commercial vehicle manufacturer," Mahindra said.
The tractor-to-technology firm got into a 51:49 venture with Navistar in 2005 to address the medium and heavy truck segment, which has been a stronghold of Tata Motors Ltdand Ashok Leyland Ltd. The venture will make trucks and buses ranging from 4.5 to 49 tonnes.
Mahindra Navistar trucks will be produced at the company’s Chakan plant in Maharashtra, where it is investing Rs4,000 crore. The company is aiming to have an annual production of 8,000-10,000 units a year.
Pawan Goenka, president, automotive sector, Mahindra and Mahindra, said the company has put in place a call centre to cater to its customers. The firm plans to retail the trucks from 57 exclusive outlets across India. The joint venture has also raised Rs350 crore from a consortium of banks, Goenka added.
“India is an important market in our global growth strategy. Over the next few months, we will be introducing a range of products which I am sure will revolutionize the heavy commercial industry in India," said Dee Kapoor, president of Navistar Truck Group, US.
(‘PTI’ contributed to the story.)