NEW DELHI|: Mahindra & Mahindra will launch a new light commercial vehicle named Jeeto by the end of this month to take on homegrown rival Tata's popular minitruck Ace Zip.

The company which has seen decline in sales in the light commercial vehicle segment during the last two years is hoping that it will see a turnaround with the new model coming in and cashing in on an expected rebound in the market.

"The Jeeto will create a new segment in the sub-two tonne segment. We are optimistic of our the model adding volumes to our LCV sales, which have been on a decline in the last two years," M&M President & Chief Executive (Automotive) Pravin Shah said.

Jeeto will be launched before the end of this month, he added.

According to auto industry body Society of Indian Automobile Manufacturers, LCVs sales have been witnessing decline for the past 25 months barring an increase in September 2014. In May sales dipped 7.19 per cent at 28,226 units against 30,414 units a year ago.

Expressing confidence that there will be a turnaround, Shah said: "The market has bottomed out and all the parameters indicate that there are positive sentiments. With Jeeto we are planning to create a compelling new value proposition that will not only challenge the conventional but will also delight our customers."

M&M's Jeeto is expected to take on Tata Ace Zip which has a payload capacity of 600 kgs and is priced around Rs 2.55 lakh. The company already has products like Gio and Maxximo Plus in the mini truck category.

M&M is also set to introduce the new generation m_Dura engine in Jeeto. An all new engine direct injection (DI) diesel engine designed for refined performance and fuel efficiency, the company said.

The new vehicle will be manufactured at Mahindra's extended automotive manufacturing facility at Zaheerabad in Telangana.