In January, Pawan Goenka told Business Line that Mahindra & Mahindra had outlined a three-year plan for its truck business following the split with Navistar of the US. “We will then take a call to determine the road ahead,” added the President of the company’s Automotive & Farm Equipment sectors.
Eight months have passed since and, on Wednesday, Goenka reiterated at a press meet that the priority was to turn around the rechristened Mahindra Trucks and Buses over the next two-and-a-half years. “There is higher confidence in the product and customer reception has been positive,” he said.
The company's trucks and bus business will eventually be merged with M&M as part of an endeavour to promote greater synergies within the group.
The parent company has committed an investment of Rs 200 crore in the current line-up of trucks and buses. Another Rs 300 crore is planned for new products across the light, intermediate and medium commercial vehicle segments.
Goenka said the Indian truck industry had seen a huge fall in volumes the last two years and the time was now right to prepare for an upturn. According to him, the group had taken long-term bets on some businesses.
In a previous interview with this paper, Goenka had said that one needed staying power in the auto business and “not break into a sweat” over monthly sales. This was particularly true for trucks.
Yet, as industry observers say, M&M continues to be a marginal player in the business which has heavyweights in the form of Tata Motors and Ashok Leyland while newcomers like Bharat Benz have made known their aggressive plans.
Volvo-Eicher, AMW, MAN and Scania are also part of this list and have equally big aspirations to grow in the commercial vehicle space. With a little over two years remaining to attempt a turnaround, M&M will have its task cut out, they say.