US Version of Mahindra-Reva NXR Electric Car Spied; 2011 Launch Likely

Our friends at Indian Autos Blog recently posted photos showing a left-hand drive version of Mahindra’s all-electric Reva NXR seen testing in India. The NXR shown could likely be a US market test mule.

Reva Electric Car Company, recently acquired by Mahindra & Mahindra Ltd (and renamed Mahindra Reva Electric Vehicle Company), has been working with US-based Bannon Automotive to establish manufacturing and sales of the NXR and other Reva models on US soil in the very near future.

Indian Autos Blog also reports that the highway speed capable Reva NXR (replacing the current Reva City model in India) will be available to Indian customers in the fourth quarter of 2011. Previous reports have suggested that the all-electric NXR model could be available in other markets (including the US) much sooner than that.

“A lot of work is going on at the moment and the launch of the new Reva NXR and NXG should be by Q4 of 2011.” – Pawan Goenka, Chairman, Mahindra Reva Electric Vehicle Company

A former plastics factory in Lysander, New York (Syracuse area) has been selected as the site to assemble complete knock down (CKD) kits of Reva car models. Each CKD will include all components necessary to build a complete car. CKD kits will be shipped from India to the Central New York operation, which will fully assemble and deliver completed cars to dealers around the country.

Although there have been no recent reports on the status of the Lysander manufacturing facility, Bannon Automotive has been working with politicians at the state and federal levels to obtain all necessary funding to break ground. It is anticipated that work on the facility will begin this fall, with manufacturing to commence sometime in 2011.

Source: India Autos Blog (click hyperlinks for specific articles), Syracuse.com
Photos: IndiaAutosBlog.com, RevaCars.com

Mahindra to Invest $1.8 Billion in Capital Expenditures

In continuation of yesterday’s news of Mahindra’s impressive 40% gain in net profit for the first fiscal quarter of 2010, Mahindra has also announced that they will be making a USD $1.8 billion capital investment over the next five years for various purposes.


"We have earmarked around Rs 8,600 crore (USD $1.8 billion) for the next five years. Out this, Rs 5,600 crore (USD $1.2 billion) will be for the Chakan plant," – Pawan Goenka, President Automotive and Farm Equipment, Mahindra & Mahindra

In January, Goenka announced that Mahindra’s Chakan plant (which builds light trucks and SUVs) would receive USD $1 billion in capex (Mahindra Scorpio Platform Replacement Moving Forward). It appears that another USD $200 million will be added to this investment. It is unclear where the remainder of the investment is going.

The question begs to be asked: Will any of this have an effect on the US launch of Mahindra pickups and SUVs?

Source: Economic Times

Mahindra Sees 40% Net Profit Gain Despite Parts Shortages

The Wall Street Journal reports this morning that despite continued parts shortages, Mahindra experienced a 40% gain in net profit for the first fiscal quarter of 2010. The WSJ post does not clarify, but we believe this 40% increase is over the same time period last year. The increase in net profit is directly attributed to the fast recovery of the Indian economy from the peak of the global downturn in 2008-2009.


Mahindra is also claiming that it under-produced vehicles by 5% due to parts shortages from suppliers who are still recovering from the downturn. Slow supply of key components such as engine and transmission castings, tires, and fuel injection equipment are to blame.

High levels of domestic demand for Mahindra vehicles and local parts shortages, leaves us wondering if delays in Mahindra’s US pickup truck launch may be partially related. A quick risk assessment would place a much higher value on known demand in the Indian market over the unknown American market.

Source: WSJ

Mahindra Northwest: Washington Dealer Added to Dealer Directory

Mahindra Planet has added a Washington state dealer to the Dealer Directory.


Felix Slette, Commercial and Fleet Sales Coordinator, for Cascade Autocenter in Wenatchee, Washington dropped us a line to let us know that they will be selling Mahindra vehicles as soon as they become available.

Felix may be contacted directly by email via: info@MahindraNorthwest.us or by phone: 509-885-3407

Felix is also working on a Mahindra-specific website for the dealership. Go to http://www.mahindranorthwest.us/ and keep checking back for updates.

Source: Mahindra Northwest