Mahindra Navistar Automotive (MNAL), a joint venture company of Mahindra & Mahindra and auto major Navistar, has planned to launch a range of heavy commercial vehicles from 4th January.

MNAL's senior executive informed that the company's joint venture with Navistar Inc would be seen operating in all the segments including light commercial vehicles, in 3.5 tonne segment and above, luxury buses and tractor trailers under 49 tonne segment, in the next two years. M&M will also be operating individually in the less-than- 3.5 -tonne segment.

MNAL has invested about Rs 1,200 crore in the product development and setting up of manufacturing facility at Chakan, which is near Pune. With the help of Indian banks, the company has raised Rs 500 to 600 crore through long-term debt and a balancing amount of equity. The company, which was commenced four years ago, has spent Rs 1,000 crore on this project till now.

The first vehicle from the medium and heavy commercial vehicle (M&HCV) segment, which is specially tailored for Indian market, has been planned to be introduced in the last quarter of this financial year.

Navistar engines would be used by MNAL, which start with a MaxxForce 7.2 diesel version which is Bharat Stage III compliant and has maximum power of 210 bhp. The engine would initially contain localization content up to 71 per cent, which will be increased up to 95 per cent with the help of M&M vendor base by the next year.

Mahindra Navistar Engines (MNEPL), which is a separate venture, would manufacture engines at Chakan. This facility would hold the capacity of manufacturing 40,000 engines every year. It is further planned to export engines to various markets at a later stage.

The MNAL executive said that there are plans to soon launch a BS-IV compliant engine after upgrading it to BS-V.

The company has planned to start exporting the engines and vehicles after a year. MNAL would only export to those countries where Navistar doesn't export. This JV will role out rear-engine powered buses in the domestic market after a one and a half year.