M&M eyes newer markets

After launch in South Africa, auto major targets Spain, Egypt, Turkey and CIS.

After its recent launch of three new models in South Africa through its subsidiary "" Mahindra South Africa "" Mahindra & Mahindra (M&M) is eyeing other global markets for its utility vehicles.

Other regions on its radar include Spain, Egypt, Turkey and CIS. Meanwhile, M&M's tractors sales to US have reached the 10,000 mark.

Speaking on the sidelines of the launch at a scenic lodge near Pretoria, Vice-Chairman & Managing Director, Anand Mahindra said, "The sales figure has touched $150 million in that market. We have plans for the CIS countries and Latin America for the tractor business."

Mahindra South Africa expects its utility vehicle volumes in that market to grow in double digits. Vijay Desai, manager, sales & marketing-South Africa said that in the past 18 months of the company's presence in that market, it has clocked total volumes of 2,622 units (of the existing models of Bolero and Scorpio).

The other major overseas markets for Mahindra's utility vehicles are western Europe (sold 1,000 units) and Malaysia (sold 800 units).

Mahindra South Africa is a partnership between M&M and five other Indian and South African partners.

The subsidiary currently imports the vehicles from India. But it may get into contract manufacturing or its own assembly line in future, depending upon the response. It takes about three weeks for the vehicle shipment to reach South Africa from India.

The new vehicles launched in South Africa include a variant of Scorpio (Bakkie) and two versions of the Scorpio Pik-Up in South Africa. The company views this as a first step towards the global launch of the two versions of the new Pik-Up, viz single cab and double cab.

The utility vehicle market in South Africa is very competitive with the presence of global majors like Toyota, Ford, Volks Wagon, BMW and Tata.

M&M aims to establish its models as lifestyle products at competitive prices. The Scorpio Pik-Up 4X4 double cab diesel version is priced at rand 205,000 (about Rs 14,35,000), while the Scorpio Baakie 4X4 diesel version is priced at rand 2,15,000 (about Rs 15,05,000).

Mahindra said the company has planned an investment of over $ 100 million in Mahindra Research Valley in southern India, which would be the second phase of the company's R&D, after the launch of Scorpio in India in 2002.

It sees much growth in the same in the coming three years. Its exports grew by 82 per cent last year.

(The corespondent's trip to South Africa was sponsored by Mahindra & Mahindra)