Utility vehicle manufacturer Mahindra & Mahindra (M&M) is working on a new light commercial vehicle (LCV) platform in the 0.5 tonne category for a bigger play in the segment. The new platform will be in the ‘Gio’ category but not an extension, said a senior official of the company.

?Gio is a three-wheeler converted into a four-wheeler. There is space in the segment and we are working on a grounds-up product that takes us to the next level,? Rajan Wadhera, chief executive ?technology, product development and sourcing, automotive & farm equipment sectors, told FE.

Asked if the new product will replace ‘Gio’ in the market, Wadhera said, ?Such calls are taken closer to the launch of the product. We cannot come with a ‘me too’ product in the market. It has to be different from what exists. Gio has its own price point and customer base.?

M&M is selling around 450-500 units of ‘Gio’ a month. The company was the first to launch a 0.5-tonne LCV in 2011.

The new platform product is expected to hit the roads in the next one and half year. It would compete against the Tata Ace Zip and Magic Iris in the segment. It is part of the M&M’s plan to invest R700-800 crore on product development every year.

Overall, sub two-tonne mini-truck domestic segment was flat with sales of 2.01 lakh units for April-January 2012-13 as against 2 lakh units sold in 2011-12, according to the Society of Indian Automobile Manufacturers’ (Siam) February report.

M&M holds 22% in the small commercial vehicle segment, with around 17% market share on the sub two-tonne mini-truck segment. The company sold 35,712 units in April-February. Other than Gio, M&M sells Maxximo (0.85 tonne) in the segment. The company launched the upgraded Maxximo with an investment of R10 crore. There are around 1.6 lakh Maxximos on the road since its launch in 2010.

?The sub-two tonne segment has not expanded much over the last year and the products by makers in the sub-one tonne have not done any good to them. This includes the products like Gio, Tata Ace Zip and Magic Iris,” said VG Ramakrishnan, managing director, Frost & Sullivan (India).

“Instead, M&M needs to focus on its pick-up trucks as the competition in the market expands. The competition is expected to revive in the 4 tonne range of pick-ups with many well known players going to enter the market. M&M needs to rejig its strategy in this segment to save itself from losing market share,? Ramakrishnan added. M&M holds over 50% in the 2 to 3.5-tonne pick-up segment with products like Genio and Bolero Maxxi Truck. The company is in the process of upgrading its pick-up range and plans to launch a new pick-up in the first quarter of the next financial year. Companies like Isuzu Motors, Maruti Suzuki and Hyundai Motor India are learnt to be looking at the LCV pick-up segment in the country.