Mahindra & Mahindra to launch new compact truck

Moneycontrol Bureau

Utility vehicle maker Mahindra & Mahindra plans to launch a new compact (micro-mini) truck, in the 0.5 ton payload segment, a top company official said on Monday. The company currently sells the Gio in the segment. The truck with a gross vehicle weight of 1.1 ton and payload of 0.5 ton was launched in 2009 as a step between the three-wheeler commercial vehicles and the mini-trucks like the Maxximo (0.85 ton payload) and Tata Motors' Ace. M&M was the first to launch a 0.5ton four-wheeler in the Indian market, but competition has intensified since, with the likes of Tata Motors' Ace Zip among others also entering the fray. So the company has now gone back to the drawing board to develop a new product. "We are working on a ground up product in the micro-mini space...The new product will compete in the Gio segment," said Rajan Wadhera, chief executive - technology, product development and sourcing. He refused to provide more details on the product only saying that since there was already a lot of competition in the segment, it can't be a "me too product." Wadhera was speaking post the launch of the company's Maxximo Plus mini-truck. The company was already selling the Maxximo in the market, directly competing with the Tata Ace. It has so far sold 1.60 lakh Maxximos since launched in 2010 and has a market share of around 22 percent. In comparison, Tata Motors has sold more than one million units of the Ace and Magic. So far this year (April-Feb), the company has sold 1.57 lakh units of its four-wheeler CVs (Maxximo, Gio, Bolero pickup etc), up 14 percent year-on-year. To take on the competition, M&M has now launched the Maxximo Plus, with new fuel smart technology. The new Maxximo Plus priced at Rs 3.40 lakh (BS III version, ex-showroom Thane) and Rs 3.49 lakh (BS IV variant, ex-showroom Mumbai) allows the customer to choose between higher power or higher mileage as and when required, at the press of a switch. For instance, if the load is heavy or if the road is ascending, then the driver can switch to the power mode, where he will get 26 HP of power. On the other hand, if the drive doesn't require much power, say on a descent or when the truck is empty, then the driver can switch to eco mode, where the power will reduce to 17HP and mileage will increase. M&M claims a mileage of 21.9 kmpl. "Critical to commercial vehicle ownership is the operating cost, per ton per kilometer; with the new Maxximo Plus the customer will potentially earn approximately 30 percent more, per year, over the competition," the company says. Apart from the new technology, M&M is also offering a 2 year or 60,000 km warranty, 35 square feet loading area and larger wheel base of 1,950mm among other features on the truck. The Maxximo Plus will be manufactured at the Chakan plant near Pune and will replace the existing Maxximo truck. The company currently has a capacity to produce around 8,000 units per month of the Maxximo at the plant (demand of around 6,000 units per month) and officials say the capacity could be increased based on demand. M&M has invested around Rs 10 crore on the new Maxximo Plus. The company has applied for a patent for the fuel smart technology and officials say it will be rolled out to some of its products over time. Mahindra shares closed down 0.2 percent at Rs 885.50 on NSE on Monday. Nachiket Kelkar
nachiket.kelkar@network18online.com