Mahindra & Mahindra Ltd., the country's largest utility vehicles maker is aiming to double its market share of its heavy commercial vehicles in the next two to three years from 2.7% now, and hopes to grow its utility vehicle segment market share to 40% from 36% currently, according to its executive director.
The company is planning to strengthen its position in the market in heavy commercial vehicle space by expanding its product portfolio and distribution networks, Mahindra and Mahindra executive director Pawan Goenka told reporters on Wednesday.
"The new truck in the 9-16 tonnes category should be ready in two and a half years time and will help us enter into the space where we are not present at the moment. Besides, we would also upgrade our existing product in the 5-7 tonnes category. All these should help us reach our aim to double our market share in the heavy commercial vehicles space in 2-3 years," he emphasised.
M&M plans to invest Rs 300 crore to develop new products in the 9-16 tonnes category in heavy commercial vehicle, while Rs 200 core to be invested in existing products in the 5-7 tonnes category.
"Our aim is to grow utility vehicle segment, which includes brands like Scorpio, Balero among others, to around 40% in the next one year,” Goenka said adding that going forward the main volume driver for the homegrown auto major would continue to be the utility vehicle (UV) segment followed by small commercial vehicle and pick-up segments.
Goenka said the company spends Rs 2500 crore as capital expenditure every financial year, in automotive and tractor segments.
During the current fiscal, it is likely to launch five more vehicles in the automotive segment. The company is also looking to set up spare part distribution centres in Rajasthan’s Jaipur and West Bengal’s Kharagppur, pumping in about Rs. 300 crore. The distribution centres will be regional hubs for catering to North and Eastern India, Goenka added.