VECV targets double-digit market share in M&HCVs with new Pro 6000 and 8000 series

VE Commercial Vehicles (VECV), the joint venture between the Volvo Group and Eicher Motors, hopes to gain a double-digit market share in the M&HCV segment in India with the launch of its new Pro 6000 and 8000 series of trucks. This comment was made by Shyam Maller, senior vice-president (sales and marketing), VECV, at the recent launch of the Pro 1000 and 3000 series in Chennai.

“We expect the total industry size of the M&HCV segment to be around 400,000 units by 2020 and want to be a serious player in this segment with the launch of Pro 6000 and 8000 series,” said Maller.

The Pro M&HCV trucks are being launched in phases, with the Chennai launch to be followed by product launches in Kerala and East Kolkata. While the Pro 1000 series covers the 5-14 tonne segment, the Pro 3000 series lies in the 9-14 tonne segment. Incidentally, Tamil Nadu contributes about 10 percent of the company’s total sales.

The Pro 6000 series will see its first product launch in July with the 31-tonne GVW multi-axle haulage truck followed by a 25-tonne haulage truck and a 6x4 tipper by end-2014 or early 2015.

In calendar year 2013, VECV sold 37,250 units, as per SIAM industry data. During the first five months of 2014, the company has sold a total of 14,547 units. The company says this gives it a four percent market share in the M&HCV segment and a 31 percent market share in the light and medium duty segment,

On the export front, VECV has shipped its products to Sri Lanka, Bangladesh, Nepal, parts of Africa and Middle East. In the first five months of 2014, it has shipped 2,400 units including 300-400 buses. “In key export markets, we have buses and LMD trucks in both the current as well as the new range and have distributors in the Middle East,” said Maller.

The company has also shipped 2,000-3000 Euro 6 engines to the European market from its new engine plant at Pithampur.  

On the bus manufacturing front, VECV says it is producing about 200 fully built buses per month but plans are to scale up this operation. As of now, the overall market for buses is down but with the new government keen to revive JnNURM, OEMs will be eagerly looking forward for more business over the long term. Earlier today, Autocar Professional learnt that two major state-run bus undertakings in Karnataka – Karnataka State Road Transport Corporation and Bangalore Metropolitan Transport Corporation – plan to purchase 2,000 buses.

Speaking on the state of the overall industry, Maller said that the past two months have seen an uptick in in the M&HCV segment. He added that re-payments by customers have improved drastically unlike in the past 20 months when repossession issues have come up. What’s more, financiers are seeing more payments of EMIs and large transporters have started replacing a part of their aging fleets and buying new trucks as a result of additional business.

Photograph (L-R): R Ramchandran, director of HEX Mobiles (an Eicher dealer); Vishal Mathur, VP (sales -  LMD Trucks) and Shyam Maller, senior VP (sales and marketing), VECV.

Also read: KSRTC, BMTC to purchase 2,000 buses to expand fleet size bit.ly/TMuAhU