HYDERABAD: Mahindra & Mahindra (M&M) has entered the three-wheeler market in Andhra Pradesh with the launch of its ergonomically-designed passenger vehicle Alfa. The diesel vehicle priced at Rs 1.3 lakh was launched in Hyderabad on Monday.

According to company officials, AP is a high-potential market and the company plans to launch CNG and LPG versions in the future. Alfa has already been launched in Chandigarh, Thiruvananthapuram and Jaipur.

“The market for three wheeler passenger vehicles in AP constitutes one-third of the national market. About 12,000 vehicles are sold per month in India, of which diesel vehicles account for about 700. We also have plans to launch CNG vehicle which will cost Rs 20,000 more,” said M&M marketing V-P Vivek Nayer.

Alfa is produced at M&M’s Haridwar plant which has an annual production capacity of about 30,000 vehicles. Plans are on to ramp up its production capacity to one lakh vehicles per annum, according to Mr Nayer. The market share of diesel vehicles stands at 62% and demand for the same is growing at 18%.