Launch of Multix, Jeeto may not liven up the LCV segment

The competition in the mini truck segment is heating up with the launch of two vehicles- Multix by Eicher Polaris and Jeeto by Mahindra and Mahindra-within a week. The manufacturers claim that both Jeeto , a mini truck, and Multix a combination of a passenger vehicle and a pick-up truck, have created a new category.

Their prices, too, are surprisingly similar, at Rs 2.35 lakh. "While Multix is tad different in features from Mahindra Jeeto, they are targeting similar customers," says Arun Agarwal, an auto analyst from Kotak Securities.

But the more important question is: will these two vehicles manage to arrest the slide in the market for light commercial vehicles (LCVs) in India? Experts are not so sure.

"Despite their price positioning (below Rs 2.5 lakh), I don't think they would have significant impact on the sales of LCVs in the next couple of years. We expect the medium and heavy commercial vehicle (M&HCVs) sales to pick up first, before we see LCV sales picking up," says Mayur Milak, auto equity analysts, Anand Rathi.

The last three years have seen sales in the LCV segment, especially the good carriers, slide alarmingly on the back of slowdown in the economy.

According to data compiled by Society of Indian Automobile Manufacturers (SIAM), goods carrier sales dropped 18 per cent from 476,695 units to 389,312 units in 2013/14 and 13 per cent from 389,312 to 337,390 units in 2014/15. The fall was even more drastic in the sub-2 tonne category (in which the two new launches fall) good carriers: sales dropped 25 per cent and 20 per cent in 2013/14 and 2014/15, respectively.

The drop has been less severe in the first two months of the current financial year. Sales of goods carriers dropped 7 per cent while the overall sales in the LCV segment dropped 6 per cent. In the sub-two tonne category good carriers, sales dropped 11.5 per cent during April-May 2015.

"The decline in sales has been slower this year than what it was in the previous financial years. The drop may be limited to single-digits primarily because of a pick-up in economic activities," says Agarwal.

With Monsoon starting on a strong note and Maruti Suzuki also planning to enter the LCV segment with a possible launch this year, the category may see more action in the coming months.

Last week, Mahindra launched Jeeto, a single-cabin mini truck that comes in eight variants with diesel engines that can generate power between 11 and 16 hp. It can carry a maximum load of 600-700 kg and claims a mileage of 37.6 kmpl. Multix, on the other hand, has double-cabin space and luggage space.

It is equipped with a 511 cc diesel engine that generates 10 hp. It has a payload capacity of 495 kg and claims a mileage of 28.45 kmpl. Multix has an added feature that certainly makes a case for it claiming to be unique.

It is equipped with a generator which can be used for lighting homes and running equipment such as drilling machines, DJ systems, water pumps, etc.