M&M target expansion into South East Asian market

Mahindra & Mahindra, the dominant player in India's pick-up truck market with a commanding 51 per cent share, is setting its sights on international expansion. The company is eyeing entry into the Southeast Asian market and plans to strengthen its presence in South Africa with its newly launched Veero range of vehicles.

Veejay Nakra, president of Mahindra's Automotive division, shared these plans in an interview with The Economic Times. He explained, "We have been selling the Scorpio pick-ups in several markets including mature markets like South Africa. The Veero will give us access to many newer markets, including Southeast Asia, where we don't have a presence."

However, Nakra emphasised that the company's initial focus would be on solidifying its position in the domestic market before embarking on its international expansion in subsequent phases.

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The Veero, Mahindra's latest offering in the pick-up truck segment, is strategically priced at INR 7.99 lakh (approximately USD 9,600). Positioned in the 2-3.5 tonne segment, this vehicle is designed primarily for intracity applications. In the domestic market, it will compete directly with models such as Tata Motors' Intra and Ashok Leyland's Dost.

Mahindra has made a substantial investment of INR 900 crore (about USD 108 million) in developing what it calls "the modular multi-energy platform" for the Veero. The company proudly claims this to be India's first such platform, highlighting its commitment to innovation in the automotive sector.

The significance of the small pickup segment in India's commercial vehicle (CV) market cannot be overstated. It accounts for approximately one-third of the total CV market, with Mahindra already holding a impressive 40 per cent share. Even more remarkable is Mahindra's performance in the large pickup segment, which constitutes about 35 per cent of the market. Here, the company enjoys a dominant position with an 80 per cent market share, according to Nakra.

Nakra expressed confidence in the company's strategy of introducing new models to drive market share growth. He pointed to the success of the Bolero Maxx pick-up, launched in 2023, which helped Mahindra gain an additional 8 percentage points in market share. "Every time we have launched a new model in the segment, it has led to a significant increase in market share," Nakra stated, underlining the effectiveness of their product development and launch strategy.