MNAL to grow dealer network, up LCV production in AP plant

Mahindra Navistar Automotives Limited (MNAL), a joint venture between Mahindra & Mahindra group and US-based Navistar, today said it would expand its domestic footprint over the next 3-4 years.

The company would expand its full dealership network from the existing 35 to 100 outlets over the next two years to push sales of its newly launched GPS fitted Heavy Commercial Vehicle (HCV) range being manufactured at Chakan near Pune.

"We shall expand our dealership network from 35 to 100 over a two year period. A full dealership outlet has been launched today in Ahmedabad and over next 12-14 months such outlets would come up in Surat, Vadodara, Rajkot, and Gandhidham," MNAL Managing Director Nalin Mehta told reporters.

The full dealerships comprise of both LCV and HCV range of vehicles.

MNAL also has plans to double the production capacity of its light commercial vehicle (LCV) manufacturing unit at Zahirabad in Andhra Pradesh.

"We shall almost be doubling the production capacity of our plant at Zahirabad in Andhra Pradesh from 11,000 to 20,000 units annually over the next 3-4 years," he said.

The Mahindra-Navistar facility is into manufacturing of LCV's including the 15 to 42 seater buses. Mahindra and Mahindra group has 51% share in the JV, while Navistar has 49% stakeholding. A late entrant into HCV category, MNAL aims to sell close to 50,000 units over the next three to four years.

"We are now a full range commercial vehicle player. Our entry into the HCV segment shall break the status quo prevalent since last 30 years. We plan to sell 50,000 units over the next 3-4 years in India," Mehta said.

The commercial vehicle (CV) industry in India is projected to grow at 10 per cent this year as compared to growth of 26% last year. Around four lakh CVs were sold in India in 2010-11.

"Last year it was a pent up demand in the back drop of recession so the CV industry clocked growth of 26%. On a steady note the sector is expected to grow at 10%," he added.

MNAL today introduced its hi-tech range of GPS fitted HCV consisting of MN-25 (Rs 16.73 lakh), MN-31 (Rs 20.69 lakh) and MN-25 (Rs 24.34 lakh), MN 40-210 HP (Rs 18.10 lakh) and MN 40-260 HP (Rs 19.78) here. The prices are inclusive of VAT.

The company would be launching its MN 49 tonner tractor trailer in March.

The company with the third largest service network in the country, has also proposed to expand its support network in line with its expansion plans.

MNAL is also eyeing to expand its reach in the global market by introducing its range of products through the established channels of Mahindra and Mahindra group.

"Our vehicles are designed as an international product. For exports we shall be looking at South Africa, which is a right hand drive dominated market," Mehta said.