Volvo Eicher Commercial Vehicles (VECV), owned by Eicher Motors Limited (EML) is targeting 50% sales growth this year. This doing so to gain market share in the commercial vehicle space.
Volvo Eicher also owns the iconic Royal Enfield (RE) motorcycle franchise.
In a statement, a top company executive said, “Last year, we sold 1,000 units a month and the move is to sell 1,500 units a month this year,” Vinod Aggarwal, MD, and CEO, VE Commercial Vehicles, said on the sidelines of a product introduction event in Mumbai.
The company launched two new truck models yesterday. It expanded its Pro 6000 series range with the launch of Eicher Pro 6049 and Eicher Pro 6041 in the 49T and 41T categories respectively.
While the Pro 6049 is a tractor-trailer, targeted at mass market applications, Eicher Pro 6041 is India’s first 41T rigid haulage truck. With the launch, EML expects its LMD truck sales to go up from 1,000 units per month currently to 1,500 units per month. These trucks of the Pro 6000 series are priced at approximately ₹30 lakh. Volvo Eicher trucks eyes 50% sales growth.
Mr. Aggarwal said, “We have high targets for this year and these two trucks will contribute to the target in a good amount,” Mr. Aggarwal said. He said the 49 tonnage truck with 250 HP would modernize the tractor segment in the country, while the 41 tonnage truck, India’s first of its kind, would find more buyers. “Transporters operating 37 tonnage trucks will upgrade to 41 tonnage segment and we know that the competition will catch up very fast”. He said the two new trucks were technologically superior and provided a better value proposition to customers.
Mr. Aggarwal also said, Last year, the company had 32% market share in the light to medium (5 to 15 tons) commercial vehicle segment, while it had 4.6% market share in the heavy trucks segment. In the bus segment, the company had a market share of 17.2%. Mr. Aggarwal declined to quantify this year’s targeted market share stating the company was interested only in higher volumes.
He said the company had been investing ₹400 crore to ₹500 crore a year and this rate of investment would continue in the coming years. The company which is exporting 15% of its production to Indonesia and Africa is planning to increase the ratio to 20% as it had identified new markets in the Middle East, South East Asia, and Africa, Mr. Aggarwal said.