M&M Eyes Double-Digit Market Share in Heavy Commercial Vehicle Segment
Auto major Mahindra & Mahindra, one of the recent players to enter the heavy commercial vehicle segment is eyeing its market share to reach double digit figure in the next few years. At present, M&M has a market share of 4.8 per cent in the segment which is heavily dominated by Tata Motors and Ashok Leyland.
"Any new player would aspire to have a market share of close to 20 per cent. He feels somehow satisfied when market share touches 10 per cent but aspiration is always 20 per cent," Rajesh C Mangal, senior VP sales and marketing, Mahindra Truck & Bus Division said on the sidelines of India Vehicle Sales & Marketing Summit 2017.
When asked Mahindra is going to achieve the target, he said creating the solution around customer's pain point and giving better aggregate features will continue to drive sales in future.
Mangal said, "We exactly don't play in the same space as the market leaders. We play in mid premium segment, we don't compete with them on prices. We compete with them on performance."
The company claims that its trucks give the best mileage in the segment and is willing to refund the whole amount if the customer feels other-wise.
Mahindra sold 6,500 units of trucks in the last financial year and has been growing at a CAGR of 30 per cent. The high growth rate helped its market share to reach 4.8 per cent from 2 per cent in FY13.
At present, it makes trucks under the Plazo brand name and has roped in actor Ajay Devgn as brand ambassador. It plans to take its operational dealership toll to 95-100 from the current 85. M&M also announced that it is all set to enter the intermediate CV segment which would fill its medium CV portfolio.
The company feels that it is extremely difficult to grow in a market where a single player holds 50 per cent of the market and would have to work on guaranteed experience to create a niche name for its products.
"Any truck coming in our workshops it should be prepared in 36 hours. If that does not happen we will pay the penalty of 3000 per day. Not a single player follows this path," Mangal said.
Mahindra's medium and heavy CVs are manufactured in its green field plant at Chakan. The plant, which spans over 700 acres, has been set up with an investment of over Rs 4,000 Crore and is producing other Mahindra products as well.
