As demand for LCV rises, Mahindra & Mahindra to increase production

According to Vice President and Head of Sales Baneswar Banerjee, Mahindra & Mahindra (M&M) will enhance its production capacity for goods-carrying light commercial vehicles (LCVs), a market that is experiencing increasing customer demand. With a maximum weight between 2 tonnes and 3.5 tonnes, including the weight of the items to be carried (1.3-2 tonnes), the business introduced eight different models of Bolero Maxx Pik-Up trucks. For LCVs in the 2-3.5 t category, according to Banerjee, the company has a monthly production capacity of 17,500 units, which corresponds to an annual production capacity of 210,000 units. M&M's domestic LCV sales in this sector reached 198,121 units in 2022-2023, according to Siam data, showing that production capacity is practically completely used. When asked how the business would meet the rising demand given that the available capacity is nearly utilised, Banerjee responded, This capacity is definitely going to increase in due course. He withheld the specifics of the growth plans nevertheless. According to Siam statistics, M&M's domestic sales of LCVs in the 2-3.5 tonne class climbed by 43.09% to 198,121 units in 2022-23. At the height of the epidemic in 2021-2022, the business only experienced 8.09% growth in this market. According to the data, M&M is the market leader in the 2- 3.5-tonne segment with a 59.73% share of 2022-23 unit sales. In 2021-2022, this market share was 55.03%. Banerjee stated, We do not talk about market share, we talk in terms of capacity, when he was questioned about the market share goal for the current fiscal year. Our current goal is to make the best possible use of the capacity, he said. Other than the macroeconomic environment, he claimed, the corporation does not foresee any significant headwinds that would prevent it from achieving its long-term objectives. The manufacturing of LCVs in the 2-3.5 tonnes sector by M&M has not been significantly impacted by the shortage of semiconductor chips, which is hurting practically the entire Indian auto industry.