Tata Motors planning new Fuel Efficient and Powerful Engines for LCV

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Tata Motors, India’s top commercial vehicle maker, is looking at replacing its older light commercial vehicle (LCV) engines with the new fuel efficient and powerful ones in order to retain dominance in the segment where competition is getting intense with new players joining in and older ones lining up newer models.

The company is currently working on a range of engines for its LCV and intermediate commercial vehicle (ICV) categories.

According to sources, Tata Motors has begun trials of the new engines and may showcase them during the Auto Expo in Delhi next month.The company currently sources its medium and heavy commercial vehicle (M&HCV) engines from Cummins India.

However, the LCV engines are being made by Tata Motors at its Pune plant. According to sources, the new LCV engines will have some input from Cummins India, but will be manufactured by Tata Motors solely.

“For LCVs, we are using our own engines. We are developing new engines to replace the current ones,” said Ravi Pisharody, president - commercial vehicles business unit at Tata Motors.

According to the company, the new 3-litre diesel engines will be launched within the next one year. Though the investment for upgradation of these engines is not known, sources said it is not very high.

Analysts said with competition getting intense, it was important for Tata Motors to retain its share in the LCV market. “Tata Motors is losing its share in the passenger vehicle segment. It is necessary for the company to take necessary steps to remain ahead in the LCV and M&HCV segments,” said an analyst with a domestic brokerage.Tata Motors currently has a market share of around 73% in LCVs. Mahindra & Mahindra has also emerged as a strong player in this segment, while new players like Ashok Leyland-Nissan and General Motors are looking to tap the potential.



Ashok Leyland recently launched its LCV Dost with its Japanese partner Nissan. The two companies plan to go aggressive with new launches. Also, General Motors and China-based SAIC will bring in their range of LCVs soon.

Pisharody said, “The new engines are more fuel efficient, technologically advanced and more powerful. We thought this is the right time to upgrade the engines”. LCV continues to be the best-performing segment for the company. Its year-to-date volumes grew 27% this year.

“There are a lot of opportunities in the light and small commercial vehicles. We are talking about slowdown, but in the last six months our growth in LCVs is almost similar to last year,” said Pisharody.

Source: DNA India