As Mahindra-badged vehicles of Scorpio and Xylo prepare to enter the American market, the company is aiming to have a splash in China also, which is the world’s second largest automobile market after the US.
The company is evaluating options to launch the Scorpio, Bolero, Xylo and pickup trucks in the Chinese market. However, no firm decision has yet been taken.
In China, the company already has a presence in the tractor segment through Mahindra China Tractors, a joint venture company with and Jiangling Motors Company. M&M had also bought 51 per cent stake in Jiangsu Yueda Yancheng Tractor Manufacturing Company, China’s third largest tractor company.
Pawan Goenka, president (automotive sector), Mahindra & Mahindra, said, “Although China is a very important market for us for passenger vehicles, it is a very restrictive market. We are already present there in terms of tractors and we will keep evaluating opportunities.”
Although the Chinese automotive market is more than three times the size of the Indian market at close to 9 million units annually, the access to it remains limited due to stringent government regulations. All the global auto majors including Ford, Volkswagen, General Motors operate in China through joint ventures with local auto companies.
Recent reports from China suggest that the impact of ongoing slowdown was clearly visible in the automotive sector as its growth slowed down to 18 per cent in the first half of this year with sales at 5.18 million units. The growth during the previous year stood above 20 per cent. M&M has been expanding its international reach with launches in newer markets such as Africa, Europe, Latin America and North America.
