New Jeeto mini-truck helps Mahindra & Mahindra grab market share from Tata Motors

Over the past two years, the overall light commercial vehicle (LCV) segment in India has been experiencing tough times. Slackening demand, overcapacity and lack of finance are some of the issues which have held back growth. However, Mahindra & Mahindra (M&M) has been gaining market share in the mini-truck segment on the back of new product launches. The segment is classified as ‘max mass not exceeding 2 tonnes’ where Tata Motors is the dominant player with its Ace range of mini-trucks.

M&M, which traditionally has been strong in the 2-3.5-tonne gross vehicle weight (GVW) pick-up segment with its varied product offerings, is now gaining market share in the mini-truck segment as well.  

With the new Jeeto, which was launched in June, M&M is giving a tough battle with segment leader Tata Motors. The Jeeto, which is available in the modular range of 8 mini-trucks, aims to cater to the varied needs of the sub-1-tonne load segment. Its pricing starts at an aggressive Rs 2.32 lakh (ex-showroom Telangana for BS III). The vehicle, which is also available in BS IV form, is available in the S, L and X series, catering to mini-truck, micro-truck and three-wheeler customers.

Fact of the matter

Sales numbers reveal the market reality rather well and going by the April-December 2015 statistics, M&M is sharply grabbing market share in the mini-truck segment, mainly at the cost of Tata Motors. Of the April-December 2014 sales of 11,615 units sold, M&M had a market share of 11.62% comparted to Tata Motors sales of 83,721 units which gave it a market share of 83.7%; the same period saw the overall mini-truck segment de-grow by 22%. A year later, However, during April-December 2015, thanks to the introduction of the Jeeto, M&M sold a total of 21,191 units and saw its market share grow to 25.25%, up almost 14%. The same period saw Tata Motors sell 59,293 units and its market share slip to 70%, conceding 13% share;these nine months of fiscal 2015-16 saw the overall mini-truck segment fall 16% year on year. Piaggio Vehicles, the other player in the segment,with its Ape Truk, has a less than 5% market share.

While launching the Jeeto, M&M was expecting it to be a game-changer in last-mile distribution as it offers buyers multiple options: 2 powertrains (11hp and 16hp), 2 payloads (600kg and 700kg) and 3 deck lengths (1630mm/5.5ft, 1780mm/6ft and 1930mm/6.5ft. Going by the sales numbers, it seems customer acceptance has come the Jeeto’s way in the first seven months after launch. It also helps that the manufacturer offers an 8-variant range, namely the S series (S6-11, S6-16), L series (L6-11, L6-16, L7-11, L7-16) and X series (X7-11, X7-16).

The top-end Jeeto X7-16, which is priced at Rs 2.80 lakh, is Rs 1.19 lakh cheaper than the Tata Ace HT, which has a sticker price of Rs 3.99 lakh. The Jeeto L6-11, which costs Rs 2.50 lakh, is Rs 5,000 cheaper than the Tata Ace Zip. 

The Jeeto is powered by Mahindra's new m_Duradirect injection diesel engine, which is claimed to deliver fuel efficiency of up to 37.6 kilometres per litre. 

Recommended: Indian CV makers export 9,423 units in January