Business IdeasCV makers step on the gas after slump
As the world tries to get over the economic slump, commercial vehicle (CV) manufacturers like Tata Motors, Ashok Leyland, Eicher, Volvo, Daimler and Mahindra-Navistar are preparing for a flurry of launches to cash in on the increased economic activity in the country.
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Leading the pack is the country’s largest CV maker, Tata Motors, which will be launching 15 new models and variants ranging from mini trucks to buses to heavy load carrying lorries over the next 12 months.
The launches from the market leader (Tata Motors has a 65 per cent domestic market share) will include new platforms that will complement its current range. A range of new buses will hit the market in a few months, according to senior company officials at the Auto Expo in New Delhi.
Ravi Pisharody, president (commercial vehicles business unit), Tata Motors, says: “We expect the CV business to be very strong over the next 12 months. There may be some slump after the new emission norms kick in but the fundamental demand remains strong for the country.”
Tata Motors is launching a new range of light commercial vehicles (LCVs), medium and heavy trucks and a wide variety of buses that will serve the short distance application, inter-city and intra-city transport.
In addition, the company is working on high-mileage hybrid buses and a hybrid Ace that will go on sale by the end of the year. The company is also working on the technology wherein the vehicle is powered by compressed air.
Close on Tata Motors’ heels is the Mumbai-based Mahindra & Mahindra (M&M), which today showcased two more heavy trucks (it has already unveiled a 25- and a 31-tonne truck on Monday) to be produced in India. The different models are built on a single platform manufactured by the joint venture company Mahindra Navistar. About Rs 650 crore has been spent on development of the platform, which is about half the usual developmental cost that is incurred in other markets, according to Tata executives.
The JV company is looking for a 15-20 per cent market share of the Indian CV space over the next five-six years. It aims to have a leadership position in the 25-31 tonne category. Both companies will be present in the buses segment, too, after a year.
Anand Mahindra, vice-chairman and managing director, M&M, said: “There is an entrenched duopoly in the CV space, with a very loyal customer base. We are going to offer the customer more than the usual, with unmatched finance, logistics and service support.”
VE Commercial Vehicles, the joint venture between Volvo and Eicher, is looking to grab 15 per cent of the domestic market, with launches ranging from 16-40 tonnes, haulage, tractor trailers, buses and tippers.
Swedish giant Volvo Trucks today launched one of the most advanced but costliest trucks on Indian roads at Rs 85 lakh (taxes additional). Despite the staggering price tag, the company has already accepted bookings for some units, while stating that the market for such trucks in India is around 400 units.
Keeping in line with the trend, Mercedes-Benz announced the launch of its much awaited three-axle inter-city luxury coach priced at Rs 85 lakh, which it built in association with partners Sutlej Motors. The company was able to sell 25 units of the two-axle model last year. Sales will not be as robust for the three-axle model, as it is priced on the higher side. The company manufactures the chassis of the bus at its facility in Chakan near Pune, while the body is hoisted on it by partners Sutlej Motors.