M&M launches CNG Maxximo mini-truck, passenger variant likely to follow

New Delhi, June 29, 2012: Mahindra & Mahindra has rolled out its latest offering in the small commercial vehicle (SCV) segment -- a CNG BS IV version of its Maxximo mini truck, priced at Rs 3.99 lakh (ex-showroom Delhi). Targeted at the Delhi-NCR region, it will meet the requirements of transporters, captive segment and corporate buyers. According to Vivek Nayer, senior vice-president (marketing - automotive sector), a CNG passenger variant on the Maxximo platform is likely to follow as the company possesses both the technology and the product platform. The timing of the launch though is undecided.

In 1998, a policy decision of the Delhi government to enforce use of clean and lower-priced fuels like CNG triggered off the use of CNG in commercial vehicles and three-wheelers in the Delhi-NCR region. The Maxximo CNG is expected to benefit businesses operating on the hub-and-spoke model for last-mile connectivity in terms of transportation of goods.

Interestingly, this is the fourth CNG vehicle from the Mahindra stable after the CNG Champion three-wheeler and the CNG Bolero mini-truck and pick-up. Together, they command a 62 percent share of the CNG market with the Tata Ace holding a 38 percent share in a 9,000 unit market in FY’12.

The market size is expected to rise to 11,000 units in the current fiscal and M&M is looking to capture a share of the Tata Ace CNG market with its latest offering. Company officials claim that the Maxximo CNG contributes towards 25 percent lower operating costs and the vehicle’s 25.6hp four-stroke spark ignition engine delivers efficiency of 19km per litre.

According to M&M, the loading area of 35 square feet, 750kg payload and 80-litre capacity gas cylinders, the Maxximo CNG allows its operator to transport goods to upto 270km on full tanks.

M&M plans to extend its Maxximo CNG to other markets in the country as the availability of natural gas improves. Agra, Lucknow, Surat, Ahmedabad are the other cities where CNG is becoming available and the company says it will be ready with its products when the state government take the CNG plunge. The CNG Maxximo will be manufactured at the Chakan facility where the company’s first product in the mini-truck segment -- the 0.85-tonne Maxximo -- rolled off the production lines in 2010. It was followed by the launch of the Maxximo mini-van in April 2011.

Nayer says that M&M is maintaining a cautious approach towards the light CV market due to rising interest rates which had led to low consumer sentiment. The company has adequate production capacity currently at the Chakan plant for its mini-trucks and will look at further expansion only when the economy grows and drives consumer demand for goods carriers.

Despite the downturn in the market, four-wheeled small commercial vehicles are notching good sales and are making inroads into the three-wheeler goods carrier market.