Mahindra forays into ICV segment with Furio

Mahindra’s Truck and Bus Division (MTBD), the commercial vehicle arm of Mahindra Group, on Tuesday unveiled its new range of intermediate commercial vehicles (ICVs) called Furio, in a bid to increase its market presence in the commercial vehicles (CVs) segment.

Under the range, MTBD will be launching 21 products ranging from 6.5T to 16T, seven of which will be launched with BS-IV engine and the rest complying with BSVI norms.

The competitive and crowded commercial vehicle industry has Tata Motors, Eicher Motors with over 30% market share, Ashok Leyland and Bharat Benz as the dominant players.

Mahindra is eyeing the ICV segment since it covers smaller distances of 400-500 km unlike heavy vehicles which cover thousands of kilometres and require large players. As Vinod Sahay, CEO of MTBD puts it, venturing into ICVs is more feasible for them as it requires small operators for short distance distribution.

With a total investment of Rs 600 crore for the project, the ICV range will be developed at Mahindra’s Chakan facility in Maharashtra which also produces Blazo, Mahindra’s heavy commercial vehicles. At present, the management does not have plans to introduce a new line for Furio, something it would consider, when Blazo and Furio volumes pick up.

Rajan Wadhera, president, automotive sector, Mahindra and Mahindra, said Furio is based on meticulously gathered insights. It will be supported by wide service and spares network comprising 100 3S dealerships, 149 authorised service centres and 1,600 retail outlets.

Pawan Goenka, MD, M&M, said after establishing itself with customers in the heavy commercials segment, it was the right time to enter the ICV segment. Goenka said he was confident of a turnaround of the truck business and said it would turn Ebitda-positive in FY19.

Mahindra India