Mahindra Trucks to enter intermediate CV segment; invest Rs. 500 cr.

Mahindra Group subsidiary Mahindra Trucks and Buses Ltd. plans to enter the intermediate commercial vehicle (ICV) segment and said it will invest Rs. 500 crore to develop new product lines as well as refurbish its existing products, the current slowdown notwithstanding.

'We are well placed on heavy commercial vehicles recently, a little behind on LCV range and the ICV segment is missing,' Rajan Wadehra, Director, Mahindra Trucks, said. Over the next 18-20 months, the company will invest Rs. 300 crore to develop a new ICV and an added Rs. 200 crore on refurbishing its present range of light commercial vehicles, he added.

The new ICV will be a 'ground-up' vehicle that will be entirely developed in-house and is expected to be ready in the next 30 months. The aggregates will not take too much time to develop as major components such as axles and engine types are already available within the Group.

HBL