Mahindra & Mahindra (M&M) plans to infuse R200-300 crore in Mahindra Navistar Automotives (MNAL) and Mahindra Navistar Engines (MNEPL) in the next three years as it looks to turn around the truck and bus business. M&M had bought out troubled US-based truck maker Navistar Group?s stake in the two JVs in December for R175 crore. Post the purchase, both MNAL and MNEPL are wholly-owned subsidiaries of M&M and continue to sell MNEPL and MNAL products.

The company primarily plans to invest in upgrading the vehicles to Bharat Stage-IV emission norms, preparing them for export, filling the gap in the portfolio and look at value engineering to reduce costs. Moreover, M&M also plans to make separate investments in bus body building, in addition to investments towards loss funding.

Cumulative losses of the two JVs as of March 2012 are seen at R692 crore. The total revenues of the JVs for FY12 were R1,346 crore. Total investment in the JVs so far is R520 crore by M&M and R546 crore by Navistar.

?The board gives us a three-year plan and we will not be looking at quarterly performance, but performance at the end of three years, and by then the business should be delivering what we are promising in three years,? Pawan Goenka, president (automotive and farm equipment sectors), M&M, told investors. ?There are two parts to that incremental investment to the business. One is to fund losses and the second is capex for future,? Goenka added.

Indicating that there was a gap in the 9-16 tonne segment and buses, Goenka said the company has postponed any investment for the 9-16 tonne segment and buses as it first plans to turn around the business it has, which is a 25-40 tonne segment.

An auto consultant said, ?M&M needs to position its products from the erstwhile JV competitively. Since it is now without Navistar, the market views change and premium pricing needs to be trimmed. Moreover, there is a need to expand portfolio and get more products.?

Talking about its plans in bus body building, Goenka said the company has not yet finalised investments or how they are going to go about it.