Wary of an earlier failed attempt, but remain positive.
By Raif Karerat
WASHINGTON, DC: India’s largest SUV manufacturer Mahindra & Mahindra is considering making an attempt at breaking into the U.S. market, according to a report by the Detroit News.
Mumbai-based Mahindra & Mahindra Ltd., known stateside more for their tractors and information technology services, is purportedly looking to raise its brand awareness in the United States with the eventual goal of introducing a line of vehicles to the American masses.
The U.S. is a very challenging market for any new automaker to come in,” said Pawan Goenka, Mahindra’s executive director and president of automotive and farm equipment. “We just need to make sure that we get everything right, rather than be in a hurry and come in and not succeed.”
According to the Car Connection, Mahindra is currently operating two small facilities in Michigan that it opened last year — one dedicated to engineering research and development and one to building GenZe-branded scooters and e-bikes. The total investment covering both facilities was $4 million.
“That is our way to test the U.S. market and see if the Mahindra brand can get established,” Goenka said. He underscored that the $16.5 billion multinational company has no set timeline for making a run at the American market, but told the Detroit News the notion is currently being studied.
Mahindra had previously tried to make inroads into the United States in the wake of the recession, but in 2012 the company abruptly cancelled plans to debut a line of pickup trucks and SUVs in the U.S.
The Indian mega-company was subsequently sued by a conglomeration of American dealers who said they’d invested considerable time and money in prepping for the arrival of the automaker’s mystery vehicles, but Mahindra prevailed after the case was taken to arbitration, reported the Car Connection.
Before any serious push into the U.S., Mahindra plans to expand operations in Europe and China. If the company can eventually establish a “strong presence” in America, Goenka told the Detroit News that the company “would certainly consider manufacturing in the U.S.”
Many analysts believe Mahindra pulled the plug on their previous plans to enter the United States after rushing their timetable and getting cold feet at the last moment. It seems the company will look to avoid that particular scenario with their second attempt.
“We just want to make sure we do everything right in terms of product, pricing, marketing and be ready with our U.S. entry,” Goenka stated. “And that’s the reason we are taking our time.”
1 Comment
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