Auto major Mahindra & Mahindra (M&M) is expecting a revival in demand for light commercial vehicles (LCVs) during the second half of the ongoing financial year. The automaker, which dominates more than half of the LCV market, believes that increased government spending and improving rural sentiment will support the growth momentum.
Veejay Nakra, President of the Automotive Division at Mahindra & Mahindra, stated that intense heatwaves and the election season led to a slowdown in demand for LCVs after two years of blockbuster sales in the 2-3.5 tonne segment.
“However, government spending after the election outcome has been robust, and the monsoon this year is above normal. This is expected to have a positive impact on the LCV segment. We are already seeing demand revival in the two-wheeler and tractor segments… this is a strong indicator that we will see the same for LCVs,” Nakra told TNIE.
Nakra also mentioned that the company’s new product, the Veero, will help M&M increase its market share in the southern region, where Ashok Leyland and Tata Motors are the dominant players. Although M&M has a market share of 63% in the 2-3.5 tonne segment in the domestic market, its share in the southern markets is only 27%. “Now we have a product to address the gap we have in the region,” said Nakra.
Sales of LCVs (less than 3.5 tonnes) have been declining so far in FY25. While growth in the 2-3.5 tonne segment has largely remained flat, vehicles in the under-2-tonne category are under severe pressure due to growing demand for commercial electric three-wheelers. This segment has registered a decline of 8-9% so far this fiscal.
M&M on Monday launched the Mahindra Veero at a starting price of Rs 7.99 lakh. The automaker also unveiled the CNG version of the vehicle and hinted at an electric launch soon.
“The Mahindra Veero will further strengthen our leadership in the LCV <3.5 t segment. Built to help customers maximize earnings, it offers best-in-class payload, exemplary mileage, and superior maneuverability. With multiple segment-first technologies and features, the vehicle ensures a premium cabin experience, unmatched safety, exceptional performance, and capability,” said Nakra.
R Velusamy, President of Automotive Technology and Product Development at M&M, stated that the Veero, designed to support multiple powertrain options, including electric in the near future, addresses the diverse operational needs of businesses, offering flexibility like never before.
Veero, engineered to support payloads from 1 tonne to over 2 tonnes in multiple deck lengths, is available with a 1.5-litre, three-cylinder, mDI diesel engine, producing 59.7 kW and 210 Nm of torque, and a Turbo mCNG engine, delivering 67.2 kW and 210 Nm of torque. The LCV delivers 18.4 km/l for the diesel variant and 19.2 km/kg for the CNG version.
Veero comes with several car-like features, such as a 10.25-inch touchscreen infotainment display, power windows, steering-mounted controls, and reclining seats.