Chandigarh: Commercial vehicle maker Mahindra Navistar Automotive will start exporting Heavy Commercial Vehicle (HCV) trucks to South Africa next year, a top official Thursday said.
"We have plans to export our HCV trucks to South Africa during next fiscal. (Currently) our products (trucks) are being tested for export market," company's MD & CEO, Nalin Mehta told reporters here Thursday.
The products, which will initially be exported, will be in 16 and 25 tonne capacity, he said, adding that the products would be manufactured here.
Mahindra Navistar, which has installed production capacity of 40,000 trucks, has so far sold 7,000 trucks since commencing production in June 2011 in the domestic market.
On expansion, he said the company will inject a sum of Rs 250 crore in next 2 to 3 years on adding new product line and stepping up capacity.
"A sum of Rs 250 crore will be invested in next 2-3 years which will be spent on launching new models of commercial vehicles," he said.
The company has already invested Rs 1,050 crore in commercial vehicle business.
Mahindra Navistar, having 5-6 percent market share, has 10 products in its portfolio and plans to roll out 3-4 models with new investments, he said.
About buying the 49 percent stake of Navistar's Group, he said that the acquisition by Mahindra & Mahindra in Mahindra Navistar Automotives and Mahindra Navistar Engines would be completed within 2-3 weeks.
Mahindra & Mahindra had announced to buy Navistar's 49 percent stake in both joint ventures for Rs 175 crore.
He also added the Navistar Group will continue to provide technical assistance to Mahindra.
Asked about impact of slow growth in GDP on commercial vehicle (CV) industry, he said the industry "degrew" by 17-18 percent in current fiscal due to slowdown in the economy.
The CV industry size exceeding 3.5 tonne capacity in the country stands at 4.5 lakh units.
"Worst is over now as interest rates will come down (after RBI reducing policy rates) and inflation is also down. The positivity (in the economy) is building up. In next six months, the things will get better," he said.