Intermediate commercial vehicles (ICV’s) – Ashok Leyland, Tata Motors and Mahindra and Mahindra
Mahindra Truck & Bus Division (MTBD) to launch ICV’s Next Financial Year.
M&M is the latest entrant into the ICV market wherein Tata Motors and Ashok Leyland already has a significant presence. With major commercial vehicle manufacturers showing increasing interest in this segment, it is imperative that ICVs will be a significant destination for investments in the coming years.
What is an Intermediate commercial vehicle (ICV)?
Simply put a commercial vehicle (CV) is a platform (motor vehicle) to transport cargo or passengers. These commercial vehicles are classified by their tonnage (i.e. the gross vehicle weight) and ICVs are those that fall anywhere between 6-16 tonnes. Another simplistic view of ICVs, as given by Ashok Leyland’s marketing, is a platform with the functionality and ruggedness of a truck but the feel and comfort of a car.
In 2015, MTBD announced plans to develop ICVs in the 8-16 tonnes range (8, 9, 10, 11, 12, 13, 14 and 16 tonnes) with two versions – Cargo and Tipper. Ashok Leyland produces ICVs under three product lines – ECOMET, BOSS, GURU. Tata Motors ICV product is Tata LPT 909 cum Tipper.
Currently, Tata Motors has an aggressive stance on boosting their ICV sales, with some estimates claiming a market share target of nearly 60%. Of course, this scenario will change to a considerable extent with M&M’s launch next financial year but to what extent depends on how well they execute their domestic distribution strategy. Advantages Mahindra has, due to its late market entry, is that of access to latest technology and production of a broad product variety. According to Nalin Mehta’s, MD & CEO of Mahindra Truck & Bus Division, statements a couple of years ago (right when they started the investments in ICVs) they plan to ramp up their dealerships, authorized service centers, roadside assistance points and spares network by a significant extent.
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