Besides, the company is drawing up plans to consolidate its presence in verticals where it is already present.
Mahindra Truck and Bus Division (MTBD), part of the $16.9-billion Mahindra Group, has also set an ambitious target of doubling its market share to 8% in the medium and heavy commercial vehicles segment in the next two years while it gears up to export heavy trucks to Africa in the next 2-3 years.
"We are determined to be a full-range player in the commercial vehicle segment. We are already there in the medium and heavy truck segment. We are also developing products for the 8-16 tonnes category. Besides, there is a plan to upgrade the current range of light commercial vehicles," MTBD Managing Director Nalin Mehta told PTI.
So, the idea "is to have a presence in the entire commercial vehicle segment ranging from 3.5-tonne to over 40-tonne category products".
The company is in the process of investing around Rs 700 crore as part of the product development project that began in 2014.
Under the plan, the company will introduce intermediate commercial vehicles (ICVs), medium commercial vehicles (MCVs), upgrade light commercial vehicles (LCVs) and also consolidate its heavy commercial vehicles (HCVs) segment.
MTBD also expects its market share to improve over the next few years riding on various factors, including expansion of sales network and new product launches.
"We currently have 4% market share in heavy duty trucks. But as we are witnessing growth month over month, we expect to double this market share in the next two years," Mehta said.
In the 3.5-7.5 tonne segment, the company has a market share of 12% which it expects to go up as it is upgrading the product portfolio.
"Besides, we are in the process of developing products in the 8-16 tonne category which we expect to launch in the next three years," Mehta said.
Asked about exports, he said the company is shipping out 300-odd trucks. "We are trying to get into Africa as the market there has good potential. It should happen in the next three years," Mehta said.
On the CV industry, he said the vertical has grown in the past one year and it is just in the last two months that some slowdown has happened.
"Normally, the buying activity is not that strong during these months. Post-monsoon, we expect the demand to get better again," Mehta said.