Friday, July 30, 2010

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),

Thursday, July 29, 2010

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

Wednesday, July 28, 2010

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

Monday, July 26, 2010

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: or by phone: 509-885-3407

Felix is also working on a Mahindra-specific website for the dealership. Go to and keep checking back for updates.

Source: Mahindra Northwest

Tuesday, July 20, 2010

Indian Press: Mahindra Attempting to Remove Global Vehicles from Import and Distribution Partnership

India’s is reporting today via unnamed sources that the basis of the legal battle between Indian light truck manufacturer, Mahindra & Mahindra, and their US importer, Global Vehicles USA (GV), is due to Mahindra’s desire to control US distribution through their existing tractor distributor, Mahindra USA.

Mahindra has not commented on missing multiple US launch dates for the highly anticipated 30 mpg diesel pickup trucks. GV has initiated legal action against the Indian conglomerate, claiming they have purposely delayed the launch, in hopes that further delays may be mitigated. Mahindra has since countered GV’s accusations by claiming that the suit has no solid basis, in spite of Mahindra not filing required EPA documentation in order to sell their vehicles in the United States.

The report claims that Mahindra wanted to buy out Global Vehicles, but that an accord could not be reached, resulting in legal arbitration. The report goes on to state that Mahindra now desires to use their existing US tractor enterprise, Mahindra USA, to control import and distribution of the pickup trucks.

The article also states that Mahindra still intends to launch the US versions of the pickup before the end of 2010.

The report is found here: M&M, Global Vehicles in legal tussle over entry in US

Thanks for the tip, PeeWee.

Monday, July 19, 2010

Loose Grasp Of Reality?: Mahindra Marketing VP Says Trucks in US By End of Year

The Hindu Business Line published an (undated) interview with Vivek Nayer, Senior Vice President of Marketing (Automotive) Mahindra & Mahindra, this morning.

When questioned on what products will be sold in the US and what the strategy was, Nayer comes off as having lots of confidence, but with little clue about the US market and Mahindra’s launch here.

“The US launch will be by the end of the year. Initially, it will be the Scorpio pick-up which is called the Mahindra pick-up there. Later, the SUV (sports utility vehicle). Compared to the fuel guzzlers available there, ours is not one. Besides, ours is a medium SUV compared with their big SUVs. Secondly, we have the advantage of a diesel product. Diesel is catching on because diesel technology has progressed a lot. The torque is better in a diesel vehicle. So, depending on the application, we are pretty sure that we will create our own niche out there.” – Vivek Nayer, Senior Vice President of Marketing (Automotive) Mahindra & Mahindra

Curiously, Nayer tells the interviewer that the pickup will be called Mahindra Pick-Up in the US, not TR20 and TR40 as many Americans have become familiar with. This also corresponds with Mahindra’s failure to formally register the trademark names Mahindra TR20 and Mahindra TR40 with the US Patent and Trademark Office.

Apparently Nayer is also unaware that several other well-established manufacturers do compete in the mid-size pickup and SUV categories in the United States. He seems to believe that the only vehicles in the market are fuel guzzling, big SUVs. Mahindra’s VP of Marketing may be in for a wake up call when the vehicles eventually launch here.

Note again that this is an undated interview from this Indian source. For the entire interview, click here: We are sure we will create our own niche in the US: Mahindra

Friday, July 9, 2010

Global Vehicles Responds to Mahindra’s Further Delay Comments

Global Vehicles USA, exclusive US importer for Mahindra vehicles, has issued a press release this afternoon regarding comments made by Mahindra & Mahindra president, automotive sector, Pawan Goenka regarding further launch delays of the India-built pickups.

The press release reads:
“ALPHARETTA, GA., July 8, 2010-It has been recently reported in the media Mahindra is claiming its pending litigation with Global Vehicles may delay the introduction of its vehicles to the United States market. This claim is both inaccurate and unfortunate. Indeed, in the litigation Global Vehicles seeks to compel Mahindra to honor its contractual obligations to obtain homologation of the vehicles and to begin shipping them pursuant to existing and long standing orders placed by Global Vehicles on behalf of its many dealers. Global Vehicles was constrained to take legal action as a result of Mahindra’s unjustifiable delay in making its vehicles available and to otherwise protect Global Vehicles’ dealers who have waited long enough for product. Global Vehicles and its dealers stand ready, willing and able to immediately begin selling Mahindra vehicles in the United States. All Mahindra needs to do is complete homologation and start delivering them. Thus any delay in entering the United States market rests exclusively with Mahindra and can in no way be attributable to the litigation or any actions of Global Vehicles.”

Global Vehicle’s statement lobs the ball back into Mahindra’s court. MP will continue to follow each volley.

Source: Global Vehicles

Thursday, July 8, 2010

Breaking: US Mahindra Entry Depends On Lawsuit Outcome

"We are going as per (our) original plan for the launch of the pick-up truck in the US, but can't say on the actual time of launch, as it will depend on the outcome of the litigation," - Mahindra & Mahindra President (Automotive and Farm Equipment) Pawan Goenka

According to NDTV Profit, Mahindra is no longer committing to a December 2010 launch date for US pickup trucks. With an actual launch hinging on a lawsuit (filed by US importer, Global Vehicles) that Mahindra has previously claimed has “groundless”, US fans of the India-made, mid-size diesel pickups could find delivery postponed indefinitely.

Click here to read the article: Our US entry depends on outcome of lawsuit: M&M

Tuesday, July 6, 2010

Mahindra Files For Dismissal of Global Vehicles Lawsuit

According to, Indian conglomerate Mahindra & Mahindra Limited has countered a lawsuit filed against them by US-based vehicle importer, Global Vehicles USA, Inc. On June 28th, Mahindra filed a request for dismissal of the lawsuit.

Georgia based Global Vehicles (GV) is the exclusive importer for a yet-to-be launched line of India-made Mahindra pickup trucks. On June 14th, GV filed a lawsuit in US district court against Mahindra for USD $35 million, claiming that Mahindra has repeatedly and purposely delayed the release of their US line of 30 mpg, diesel-powered pickup trucks.

Since news of GV’s lawsuit first broke, Mahindra & Mahindra’s vice chairman and managing director, Anand Mahindra, has publicly stated that the grounds of the lawsuit are baseless. It appears that this request for dismissal backs up those statements.

Mahindra is claiming that the dispute should be resolved in arbitration, not in a US federal court. Mahindra calls into question the jurisdiction of any US court over the Indian company’s agreement with GV. The filing also claims that Mahindra has not been properly served by Global Vehicles who has submitted paperwork to a US Mahindra subsidiary, and not directly to Mahindra in India.

Despite legal posturing by both parties, it appears that Mahindra still has not obtained EPA certifications for the US-bound pickups, nor have they formally registered trademark protection for the Mahindra TR20 and Mahindra TR40 names. The request for dismissal of the lawsuit does not address accusations of purposeful delivery delays claimed by GV, but does suggest that Mahindra would prefer to negotiate with Global Vehicles behind closed doors instead of in the public realm.

Stay tuned.

Source: GlobalAtlanta