| Making this announcement, Dr. Pawan Goenka, President-Automotive Sector, M&M said, "The decision to enter US, the most demanding automotive market in the world, is a deliberate and rational decision. As the market changes, we realize that even to stay on top of the Indian market, we need to be a global player and the US forms a crucial part of our strategy to make Mahindra a truly global company. Close to half of the global sales in SUV's and pickups is in the United States and we want to capture at least a small fraction of that to start with". |
| Global Vehicles has been given exclusive rights to market Mahindra products. A formal announcement of the date of launch and other details will be made during the second quarter of 2007. Global Vehicles has an established channel network of 130 dealers, which would expand to around 200 in time for the launch. |
| M&M would be the first Indian auto major to break into the North American passenger vehicle market. |
| M&M has initiated a concerted drive in product expansion, innovation and globalisation and its vehicles have seen a fair amount of success in recent years. "Our vehicles have been quite successful within a short span of their launch in most countries, and our exports have been growing at over 70% year on year, though on a small base. Currently around 5% of our volumes come from exports and we aim to rapidly ramp it to 20% of our total sales volumes" said Mr. P N Shah, Executive Vice President, International Operations. It has export presence in Africa, Europe, South East Asia and SAARC countries among others. |
| M&M will be launching an upgraded version of its SUV and pickup and is investing in the products to meet the FMVSS & EPA regulations. "We are fully equipped to meet the demanding US conditions when we launch our vehicles in the US. Majority of our export range of vehicles would be upgraded to match US standards," said Dr. Arun Jaura, Sr. Vice President, Product development. |
| The Mahindra story |
| M&M's Automotive Sector traces its antecedents back to 1954. The iconic jeep that led American GIs to victory in World War II is the very same vehicle that drove the Mahindra Group to success in the automotive sector. Mahindra & Mahindra, the flagship company of the Group, was set up as a franchise for assembling general purpose utility vehicles from Willys, USA. Over the years, the group has developed a large product portfolio catering to a diverse customer base spanning rural and semi-urban customers, defence requirements and luxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-class Sports Utility vehicle, which bridges the gap between style & adventure, luxury & ruggedness and performance & economy. |
| M&M is also the first Indian auto manufacturer to launch CRDe (common rail diesel engine) technology, offering it in Scorpio. |
| R&D capabilities |
| Offroad vehicles including SUVs and pick ups are Mahindra's strength. The leading Indian SUV Scorpio is from the Mahindra stable and was indigenously conceptualised and designed by M&M's in-house Integrated Design and Manufacturing (IDAM) team. It has a contemporary style, design and technology and has been developed with the involvement of some of the best-in-class global vendors like Fukui, Fuji, Lear, Visteon, Bridgestone, Borg-Warner and Meritor. M&M has initiated a process of product innovation and expansion and has other indigenous platforms in the pipeline. |
| Currently, M&M has one of the most talented R&D talent pools, actively engaged in developing the next generation of Mahindra's vehicle portfolio. |
| The India story |
| India has become the playground for global auto majors and the car industry is growing a brisk rate of over 16 per cent, driven by a rising consumer base, more and more disposable cash and easy credit. Indian auto majors have been setting a healthy growth in vehicle exports too. |
| In tune with this steroidal growth coupled with high engineering skills, and low costs per unit of innovation, the component sourcing industry is also growing. Global auto majors have been ramping up component volumes and value of sourcing from India. The industry is poised to jump from exports of US$ 1.8 billion in 2004-05 to US$ 5.9 billion in 2008-09. |
| About The Mahindra Group |
| The US $3.8 billion* Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top five tractor manufacturers in the world and is the market leader in multi-utility vehicles in India. It has a leading presence in key sectors of the Indian economy, including trade and financial services (Mahindra Intertrade, Mahindra & Mahindra Financial Services Ltd.), automotive components, information technology & telecom (Tech Mahindra, Bristlecone), and infrastructure development (Mahindra GESCO, Mahindra Holidays & Resorts India Ltd., Mahindra World City). With over 60 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution. The Group employs over 30,000 people and has several state-of-the-art facilities in India and overseas. The Mahindra Group has ambitious global aspirations and has a presence in five continents. Mahindra products are today available in every continent except Antarctica. M&M has made strategic acquisitions of plants in China and the United Kingdom & Europe, and has 3 tractor assembly plants in the USA. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault SA, France, and International Truck and Engine Corporation, USA. |
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