Mahindra & Mahindra to increase LCV production capacity as demand rises

As per the SIAM data, M&M's domestic sales of LCVs in this segment reached 198,121 units in 2022-23, indicating that production capacity is almost fully utilized

Mahindra & Mahindra (M&M) is going to increase its production capacity for goods-carrying light commercial vehicles (LCVs), a segment that is seeing high demand from consumers, Vice President and Head of Sales Baneswar Banerjee said on Tuesday.

On Tuesday, the company launched eight types of Bolero Maxx Pik-Up trucks, categorised as LCVs and have a maximum weight between 2 tonnes and 3.5 tonnes, including the weight of goods to be carried 1.3-2 tonnes.

Banerjee said the company has a monthly production capacity of 17,500 units for LCVs in the 2-3.5 tonnes category, which translates to an annual production capacity of 210,000 units.

According to Siam numbers, M&M’s domestic sales of LCVs in this segment reached 198,121 units in 2022-23, indicating that production capacity is almost fully utilised.

On the question of how the company is going to meet the increasing demand as the current capacity is close to full utilisation, Banerjee said, “This (capacity) is definitely going to increase in due course.” He, however, did not reveal the exact expansion plans.

M&M’s domestic sales of LCVs in the 2-3.5 tonnes segment increased by 43.09 per cent in 2022-23 to 198,121 units, according to Siam data. In 2021-22, at the peak of the pandemic, the company saw a growth of just 8.09 per cent in this segment.

M&M is the market leader in the 2-3.5-tonne segment with a 59.73 per cent share in 2022-23 unit sales, the data showed. This market share was 55.03 per cent in 2021-22.

When asked about the market share target for the current fiscal year, Banerjee said, “We do not talk about market share, we talk in terms of capacity. Right now, our objective is to ensure the fullest use of the existing capacity.”

He said apart from the macroeconomic situation, the company does not see any strong headwind, which will help it meet its future targets.

According to Banerjee, the semiconductor chip shortage, which is affecting almost the entire Indian auto industry, has not affected M&M’s production of LCVs in the 2-3.5 tonnes segment to that extent.

While M&M is the leader in the 2-3.5 tonnes segment, Tata Motors leads in the sub-2-tonne segment with its Ace pick-up truck. Banerjee refused to give any details on M&M’s is planning to launch products in the sub-2-tonne segment.