India's Mahindra Gio Is the Nano of Trucks

MUMBAI, India — Mahindra & Mahindra (M&M) has just launched its Gio here, a compact truck that is priced at $3,500. The company says it has positioned this new model between the three-wheeler and mini-truck segments and hopes to create a new segment by appealing to buyers in both segments with the Gio.

The Gio, developed by M&M with some outside help at a cost of just $50 million, has a payload capacity of up to 1,100 pounds. It is powered by a 9-horsepower diesel engine supplied by Kohler, while the gearbox is an all-new Mahindra design. The company says that while the Gio is based on an all-new platform, it uses about 50 percent of the parts from its current Alfa three-wheeler platform. It is claimed to offer fuel economy of 64 mpg and is ideal for intra-city transport of goods.

M&M says the Gio has an ergonomic design and will offer "carlike" comfort to this segment for the first time while meeting the relevant crash and safety norms. The vehicle has been tested and validated over 60,000 miles to ensure its reliability, M&M assures.

M&M's automotive sector president, Pawan Goenka, says the Gio "is all set to change the dynamics of the small commercial-vehicle segment." Goenka notes that the market for this kind of vehicle will grow "as city limits gradually expand and distribution needs increase."

The Gio will be made at M&M's Haridwar plant. The company plans to build 20,000 units per year, which will be increased to 30,000 in the future. M&M is launching the Gio in a phased manner across the country.

Inside Line says: Cheap to buy and run, safe to drive: Looks like a winning formula for aspiring small-business owners. — Hormazd Sorabjee, Correspondent