M and M to invest Rs 500 cr in trucks, buses
Automobile manufacturer Mahindra and Mahindra (M and M) Ltd on Wednesday announced its plans to invest Rs 500 crore in its trucks and bus subsidiary Mahindra Trucks and Buses Ltd (MTBL), formerly Mahindra Navistar Automotive.
The company announced plans to invest Rs 200 crores to further strengthen its existing product line up and start exploratory work for new product lines that could lead to further capital infusion of over Rs. 300 crores in due course.
Subject to regulatory approvals, the company also intends to demerge its trucks and buses operations from MTBL into Mahindra and Mahindra to derive greater synergies.
Mahindra Trucks and Buses Ltd. has also announced new branding for its heavy commercial vehicle range.
The multi-axle trucks will now be called Mahindra TRUXO 25 and TRUXO 31; Tractor Trailers will be called Mahindra TRACO 35 and TRACO 40; and the tippers will be called Mahindra TORRO 25 and TORRO 31.
Speaking on this new moves, Pawan Goenka - President Automotive and Farm Equipment Sectors, Mahindra and Mahindra Ltd., said, "We are fully committed to our commercial vehicles business and intend to focus on running the LCV, Truck and Bus business as a separate division post the proposed demerger, with the objective of growing our presence in the Indian commercial vehicle industry."
"We plan to invest significant resources over the next few years which will help us strengthen our existing product range and refurbish the current LCV range. Exploratory work has also begun for the introduction of new products that will help address the ICV and MCV segments in the 7.5 to 16 ton GVW category," he added.
Nalin Mehta, Managing Director and CEO, Mahindra Trucks and Buses Limited, said "The new nomenclature and rebranding demonstrates our long term commitment to the commercial vehicle business which has the full support of the Mahindra Group."
"While our name has changed, what remains unchanged is our determination to deliver on our customer's evolving needs. With a powerful range of products including HCVs, LCVs and buses, and a continued focus on breakthrough innovations we will continue to deliver market-leading performance and enhanced products and services for the Indian transport industry," Mehta said.
The company said it has over 1 lakh LCVs and 8,000 heavy trucks on the road so far, with a service network of more than 1,591 touch points, which includes 57 3S dealerships, 271 authorized service points drawn from other dealers within M and M's automotive and farm equipment sector and nearly 1,263 roadside assistance points on important trucking routes.
This network will be further expanded by leveraging synergies following the demerger of operations.
(Posted on 14-08-2013)