Mahindra & Mahindra is developing what it calls a Light Transportation Vehicle (LTV) which will be launched by the end of 2009 and compete head on with the very successful Tata Ace one-tonne pick-up truck.

The LTV has been under development for the last three years and will be manufactured at the company's Chakan plant. The LTV will be a four-wheeled, sub-1 ton vehicle that is likely to offer a higher load capacity and better fuel efficiency, compared to the Ace.

Pricing is expected to be very aggressive compared to the Tata Ace which costs Rs. 2.2 lakhs. The one-ton light commercial vehicle segment has been growing rapidly even during the recent downturn in the market. In fact, it’s this segment which is helping to push up growth in the overall commercial vehicle market.