M&M to hike truck output, sets up Delhi-Mumbai service corridor

New Delhi: Home-grown auto major Mahindra and Mahindra is hiking production of its trucks with the introduction of a second shift at its Chakan plant to meet increased orders for the Blazo vehicles.

The company, which today introduced a service support initiative for its commercial vehicles on the Delhi-Mumbai service corridor, will sell trucks only under the Blazo range once the BS IV emission norms kick in from April 1 this year.

"We have been selling on an average around 500 units a month and last month we sold 616 units. Considering the orders for our Blazo trucks, we have added a second shift so that from this month and March we produce more vehicles," Nalin Mehta, CEO Mahindra Truck and Bus Division and Managing Director, Mahindra Truck and Bus Ltd told PTI.

He, however, declined to share by how much the production will go up and the number of pending orders. Mahindra Truck and Bus Division (MTBD) produces the new range of medium and heavy commercial vehicle at the Chakan plant.

When asked about the market conditions specially after demonetisation, Mehta said while the industry has been hurt, being a new entrant Mahindra has been least affected.

"We are a new player and for us it is about penetrating new market. While the industry has declined, we have grown," he said, adding that in the ongoing fiscal so far the company has sold around 3,500 heavy commercial vehicles (HCVs) and 8,000 light commercial vehicles (LCV).

As per SIAM data, total medium and heavy commercial vehicle sales in the April-January period this fiscal stood at 2,32,589 units and Mahindra sold 5,668 units.

On the upcoming BS IV emission norms, he said: "We are prepared. Our Blazo range is fully compliant with the new norms and going forward we will sell only under this range. We have not upgraded the other products."

Mahindra has been selling trucks under Blazo and Truxo brands. With after sales and service becoming a critical part of the business, Mehta said MTBD has been focussing on giving its customers enhanced experience and setting up the service initiative on the Delhi-Mumbai corridor is yet another step.

"The Delhi-Mumbai stretch accounts for nearly 30 per cent of trucking traffic in the country. Considering the importance of this route, MTBD decided to launch the service corridor to enable customers get prompt access to quality service and spare parts," he said.

Under this initiative, the company is giving guarantee to its customer that in case of breakdown on the corridor, its service help will arrive within 2 hours and if not, it will pay a penalty of Rs 500 for every extra hour of delay.