Mahindra to relook into bus business strategy in future
Mahindra Trucks and Buses Ltd today said it will relook into its bus business strategy after a year or two once the company implements the ongoing Rs 700 crore project to rollout ICV (intermediate commercial vehicle) and more LCV products besides doubling marketshare in HCVs.
“We are currently focused on ICV and new LCVs. We will take a relook on bus business in a year or two after the rollout of ICV is complete,” Mahindra Trucks and Buses Managing Director and CEO Nalin Mehta said here.
Mahindra currently operates in the 15-42 seater small bus space, which has about 8 per cent market share.
The company will take a relook at the bus business and only then will it be able to speak on new products and roadmap for the segment, he said on the sidelines of an event here.
It will pump in Rs 700 crore in three years, beginning last year for new ICV segment and deepening LCVs. In HCV the company has invested about Rs 1000 crore.
The company was hopeful on revival of the market with green shoots in the economy, proposed rollout of GST and good monsoon, Mehta said.
“We expect commercial vehicle demand to pickup. Good monsoon, GST rollout and better roads will help drive growth,” he said, adding that the company aims at doubling market share in HCVs in the current fiscal from 4 per cent.
Mahindra which is currently exporting its trucks to Saarc countries like Nepal, Bangladesh and Sri Lanka, is exploring to enter the African market, the MD said.