Mahindra, Navistar JV to navigate Indian mkt

Written by Shweta Bhanot | Updated: Jan 7 2010, 05:30am hrs
As Mahindra Navistar Automotives Ltd (MNAL), the commercial vehicle joint venture between Mahindra & Mahindra Ltd (M&M) and Navistar Inc of the USA, is set to tap the Indian CV market with ground-up products, the latter has said nothing can stop it from getting the existing Navistar products into India. MNAL is also eyeing the overseas market.

Daniel C Ustian, chairman, president and chief executive officer of Navistar International Corporation, said, At present, we are looking at making new ground-up products for the India under the joint venture with M&M. But nothing stops us from getting our existing products from Navistar global portfolio to the country.

The possibility is of Navistar products being brought into as completely knocked down (CKD) in India and assembled at the joint venture plant in Chakan near Pune. The plant, which spreads over 700 acre, has been set up with investments of over Rs 4,000 crore and will produce other M&M products as well.

The next twelve months are to establish ourselves in the competitive segment, said Pawan Goenka, president, automotive sector, M&M, and president, Siam.

Talking on the engine business and potential lying in India, Ustian said, We will look at more engines to India other than the MaxxForce 7.2 litre launched recently. He added that the companys aim is to have Navistar engine in each and every truck and bus from the stable globally. He said this should kick in by next year.

On Wednesday, MNAL unveiled MN 49 and MN 40 trucks for the Indian market. The 25-tonne and 31-tonne trucks were earlier unveiled. With the addition of the MN 49 and MN 40 to its product portfolio, Mahindra Navistar is now well poised to cater to a wide spectrum of requirements in the Indian HCV industry. This product line up makes us a credible player in the commercial vehicle industry, said Anand Mahindra, vice chairman and managing director, Mahindra Group. While it plans to launch an inter-city bus early 2011. In the first year, the company is looking at 8,000 to 10,000 units of truck production.

MNAL will look into commercial vehicle market from 3.5 tonne GVW to 49 tonne GVW with variants of passenger transport, cargo and specialised load applications. Mahindra Navistar aims to expand its product line over the next two years to emerge as a full range commercial vehicle player.