Mahindra to Lose EPA Approval in 2011

It’s hard to believe it was over a year ago that Mahindra finally announced that it had completed the physical requirements to obtain EPA certification.  Excitement was building and many fans were beginning to think that the arrival of the Mahindra diesel pickup was on the horizon.

Sadly, in the time that has passed, Mahindra purposely delayed completing the EPA paperwork filings, kicked its importer (Global Vehicles) to the curb, and the EPA released its Estimated New EPA MPG fuel economy ratingfor the USmodel Mahindra TR40 4x4 of only 21 mpg.

Mahindra appears to be on to bigger and better things (Ssangyong) with seemingly little regret and no remorse about abandoning their US market aspirations.

Now we close in on the end of 2011.  Mahindra will lose their 2011 model year EPA approval, and they have not filed for 2012 approval.  Mahindra and GV are currently in arbitration and a whole bunch of US dealers are left with sparse bank accounts and empty showrooms.

Well Mahindra, thanks for trying.  Maybe we we’ll see you again someday.

Source: Green Car Reports

India to Require Diesel Vehicles to Average 46.8 mpg by 2015

The Indian government is set to impose stringent CAFE (Corporate Average Fuel Economy) requirements on Indian automakers within the next year.  While the current average allowed for an automaker’s full line of vehicles is 36.6 mpg, companies like Mahindra & Mahindra and Tata will have until 2015 to make a 10 mpg improvement when the new standards take effect.  If the CAFE requirement isn’t met, manufacturers will face monetary penalties.

The increased fuel economy ratings are directly related to a reduction in CO2 emissions.  The current 36.6 mpg target correlates with the production of 165 grams per kilometer, and the 46.8 mpg target translates to 135 g/km of CO2 emissions.  Environmental organizations are pushing for India to aim for parity with European standards and achieve 110 g/km by 2020.

Indian manufacturers build many small vehicles like Mahindra’s Gio and Maxximo which help them to meet the current standards.  However, the proposed requirements will force all manufacturers to tighten their fuel efficiency belts.  Since Mahindra is, and intends to remain an SUV-focused company, we can expect to see economy improvements across the product range, but they will certainly make hybrid and electric technology more of apriority.  Efficient designs from Ssangyong and Mahindra-Reva electric cars should help Mahindra meet the standards as well.

Of course none of this will immediately effect the US introduction of Mahindra or Ssangyong vehicles.   But it does help to force common global economy and emissions standards into place.  India is emerging as an international automotive player.  Quickly stepping up to meet some of the world’s strictest emissions standards is a very positive move which will help all Indian manufacturers to be seen as serious global carmakers and shed some of their third world stigma.

Source: AutoblogGreen

M&M Open to Using Ssangyong Engines in Mahindra Vehicles

Ssangyong Rexton (courtesy AsianCarsBlog.com)

Pawan Goenka, President Automotive and Farm Sectors, Mahindra & Mahindra Ltd, has recently stated that Mahindra could possibly install more powerful engines in its vehicles from recently acquired Ssangyong Motor Company (SYMC).

Ssangyong produces its own engines using technology and designs licensed from Mercedes-Benz.  In fact, the Ssangyong Rexton CUV is effectively a Mercedes M-Class with a body styled by Italdesign and built in South Korea.

Mahindra plans to introduce the Ssangyong Rexton and Korando C models in India this year.  Their plan has been to import complete knock down kits (CKD) from South Korea and assemble complete vehicles in their Indian factory.  Recent changes to Indian import regulations concerning the definition of CKD kits, may force Mahindra to build Ssangyong engines on Indian soil in addition to assembling the complete vehicles.  

Korando C (courtesy Gradiliste.com)

Goenka was recently asked by BSMotoring.com if the CKD definition change would force Mahindra to consider using Mahindra engines in Ssangyong vehicles for the India market.

“These products are of a higher horse power (bhp) category. Both Rexton and Korando C use a 175 bhp engine. We don't have an engine of that category. If these products using M&M engines, which is 120 bhp, they would be underpowered. So, it is very unlikely that we would consider a Mahindra engine for an SYMC product. However, the option of using SYMC engines in our products is certainly available to us. If we feel some SsangYong products need engines with lower horse power, M&M engines are easily available.” Pawan Goenka

Despite ongoing setbacks in Mahindra’s attempt to enter the US market with diesel pickups and SUVs, Mahindra’s consideration in using alternative or more powerful engines sourced from its complete corporate catalog could be an asset.  

The US government sees Mahindra pickups as an imported vehicle.  They are not going care if the engine in an Indian built vehicle comes from India or South Korea, as long as it meets safety and emissions criteria (they potentially face the Chicken Tax either way).  Using the more powerful (and possibly more readily EPA compliant) SYMC engines could be a benefit to US Mahindra pickups if/when they arrive here.

Source: BSMotoring

Second Generation Scorpio to Launch in March 2011

The Indian auto press and Mahindra Planet have been predicting a 2011 launch for a new Mahindra Scorpio SUV since early this year. A well written article by MoneyControl.com seems to confirm that “an all-new Scorpio (is) set for a March 2011 release”.


Rumors have consistently predicted that the second generation Scorpio will retain a rugged body-on-frame construction like that of the current (first generation) Scorpio. Although it is unclear how Mahindra defines “all-new”, one can assume that at least the quality and safety of the SUV will be improved upon while retaining the current generation of efficient 4-cylinder diesel engines.

While sightings of camouflaged Mahindra W201 “world SUV” test mules have been quite common in recent months, it has been rare to hear of first hand encounters with disguised Scorpio test rigs roaming Indian roads. Back in August, Team-BHP forum member ‘Princey’ did happen upon what was possibly a new Scorpio in testing. Unfortunately no photos have been taken of suspected Scorpio test vehicles.

The current Scorpio shares it’s chassis with the perpetually delayed, US-bound Mahindra TR20 and TR40 pickups. With many US Mahindra followers well aware of a new Scorpio in the works, some have speculated (MP included) that Mahindra was possibly using the current Scorpio-based pickups as test platforms to obtain the required EPA approvals to homologate their mHawk 2.2L diesel engine.

If an all-new platform is just around the corner, it may be possible that Mahindra will not bring the design we currently know as the TR into the United States. Instead, they may feel that their best move is to start fresh with a more evolved pickup built around a proven powertrain.

Disclaimer: Although the MoneyControl.com article refers to the all-new vehicle as a Scorpio, there is no mention of the W201 crossover which is set to launch in 2011 as well. Mahindra is notoriously tightlipped about mentioning details of any future models. There is the possibility that the vehicle mentioned is actually the W201, but Mahindra Planet suspects that is not the case. Time will tell.

Source: MoneyControl.com, IndianAutosBlog.com, Team-BHP.com, and as hyperlinked

Korean Pickups, EPA, and Mahindra

Ooh la la… SsangYong

Many web news outlets are publishing word that Mahindra & Mahindra will be bidding to take over failing South Korean automaker, SsangYong Motor. Why do we care? Not only does SsangYong have a super catchy name, but the bulk of their lineup is SUV’s.

Most interesting of the lot is SsangYong’s Actyon Sports A200S and A230S pickup trucks (in the photos above and below). Both share a common body-on-frame platform with 2WD and part time 4WD options. The A200S has a 2.0 liter direct injection diesel available with automatic or manual transmissions. The A230S is a 2.3 liter gasoline powered pickup available only with a manual transmission. While both models clearly aren’t as heavy duty as the Mahindra TR20 and TR40 (sub-1000 pound load capacity), they could be an interesting complement to Mahindra’s current pickup options. We’ll have to wait until August before we know who actually wins the bid for SsangYong Motor.

EPA

As reported by Automotive News and PickupTrucks.com, Mahindra has accumulated the required mileage on their fleet of US test pickups to finally submit for EPA approval. Mahindra plans to submit its request for approval this week and we expect the official EPA okay sometime next month.

As mentioned in both articles and previously in this blog, the relationship between US Mahindra importer, Global Vehicles, and India-based, Mahindra & Mahindra, appears to be slightly strained. GV has learned from past mistakes about predicting actual US launch dates and will no longer commit to naming a timeline. Anticipation for the (expected) mid-$20,000, diesel-powered pickups is extremely high. It’s possible that the trucks could reach US shores by early August of this year. Hopefully, Mahindra will release an actual date in the near future.

Sources: Carazoo, SsangYong Motor, Automotive News, PickupTrucks.com

Mahindra to Announce US Launch Timeframe in 2-3 Weeks

Moneycontrol.com reports from India this morning that a top official (we assume in India) tells them that Mahindra will make an announcement on the US launch of Mahindra TR20 and TR40 pickups in 2 or 3 weeks.

No source for the information is sighted, but the article does contain quotes from Pawan Goenka on the US emissions certification process and delays (apparently from a previous interview).

For the complete article: Mahindra to set date on US launch in 2-3 weeks

Global Vehicles John Perez Responds to Lack of EPA Application

Posted today on Mahindra Truck Forum, GV president John Perez, spoke via telephone with the forum’s administrator, Andy Isaacson, to discuss and respond to the PickupTrucks.com article revealing that Mahindra had not yet applied for EPA certification required to sell the Indian-built pickup trucks in the US. All responses on various subjects are quoted from the forum post.

EPA certification
“Just got off the phone with John Perez, the president of Global Vehicles. It was a good conversation. He re-affirmed that they are not delayed from their mid to late spring release. The EPA Certification is the last thing on the list after all the testing and hard work has been done. He said that there are Mahindra pickups all over the US, testing, testing, testing in every condition possible. That has been the reason for some of the delays because Mahindra wants to make sure that nothing goes wrong when they actually sell them here. EPA Certification is just around the corner which means that so are the trucks.”

Warranty and Pricing
“As far as warranty goes, that is still not 100% decided. As far as pricing goes, they are expecting that they will not make any money on the sales of the initial Indian made Mahindra trucks due to the chicken tax. However, wether made in India or the US, they plan on pricing the vehicle to be as affordable as possible to the consumer. It does not sound like they are planning a sudden price drop on the US made ones.”

Parts Supply to the US
“For parts, Mahindra will be using a separate company that specializes in parts distribution that already has warehouses all over the US. It's what this company does best and they will be able to get parts to the dealers quickly.”

Dealer Service
“Similar to the parts, the tech training will also be handled by a separate company that specializes in training technicians all over the US.”

The complete post can be found here: Mahindra Truck Forum: EPA Certification

Bombshell! Mahindra Has Not Applied for EPA Certs, Delays Likely?

PickupTrucks.com broke news yesterday that Mahindra has still not applied for US Environmental Protection Agency certification. The certification is required for Mahindra to prove that they meet all federal emissions requirements in order to sell the TR20 and TR40 pickups in the United States.

US launch of the Indian-made diesel pickup trucks have been delayed several times over the last two years. Could this cause further delays in availability at the 300+ dealers that have been established around the country?

As of late yesterday, dealers had not received any statements from Mahindra truck importer, Global Vehicles, regarding this news. The level of disappointment in the US Mahindra truck fan community is significant to say the least.

Previous statements from Global Vehicles indicated that Mahindra trucks would receive EPA and NHTSA approvals in the first quarter of 2010.

We will update as we learn more…

Source: PickupTrucks.com

New VP of Sales and Marketing at Global Vehicles While Delays Remain Likely

Dan T. Najour has been named executive vice president of sales and marketing for Mahindra importer, Global Vehicles USA. Najour replaces Larry Daniel in the senior vice president position and brings with him 30 years of automotive sales experience to the GV-USA organization.

It is unclear what circumstances lead to the replacement of Daniel. However, GV-USA and Mahindra are said to still be working toward an eventual 2010 launch. Rumors lead us to believe that US-bound Mahindra TR20 and TR40 pickups will be manufactured in India beginning in January 2010 with a soft launch (key markets first) expected in February of 2010. However, some dealers are stating that they expect trucks in mid-May 2010.

NHTSA and EPA approval of the vehicles is still unknown. In a mid-November interview, GV-USA spokesman, Mike Geylin stated that NHTSA and EPA approval had not yet been given for the new-to-the-USA vehicles, but were expected sometime in the first quarter of 2010. Specific dates were not given.

The timing of several elements will have to fall perfectly into place for a February rollout. Details of the Mahindra dealer network throughout the US have yet to be announced or confirmed, US government vehicle approvals are unknown, and marketing has been non-existent. Hopefully it all comes together and we can get some first impressions of the TR pickups early this spring. It’s likely to be a very busy Holiday season for GV-USA.

Sources: PickupTrucks.com, MotorAge.com, MahindraTruckBlog, MahindraTruckForum

Special Thanks: Joe Callimachus and Pee Wee at MahindraTruckForum

Mahindra Expects Final EPA and NHTSA Approval in First Quarter 2010

The Press of Atlantic City reports this morning in an interview with Global Vehicles Spokesman, Mike Geylin, that Mahindra pickups are being reviewed by the Environmental Protection Agency and the National Highway and Traffic Safety Administration. Global Vehicles expects the TR20 and TR40 pickups to get final approval from both agencies in the first quarter of 2010.

The article also interviews future Mahindra truck dealer, Bill Kassner, owner of Chapman Ford. Chapman is currently expanding one of their dealerships to accommodate the brand. Mahindra vehicles will be featured at their Egg Harbor Township location, and possibly others.

You will find the complete article: Here

Source: PressofAtlanticCity.com

Diesel Demand: Why is Mahindra Alone in Introducing a Mid-size Diesel Pickup to America?

While Mahindra is establishing itself as a clean diesel and diesel/hybrid niche-brand in the United States, domestic manufacturers have no known plans to introduce competitive vehicles in response.

Emissions compliance, development costs, and consumer demand are the main reasons other manufacturers are not developing their own diesel-powered small trucks. Of course these are completely valid reasons. So, how about some Q&A…

Q: Why are small, diesel-powered vehicles so difficult to introduce to the United States?

A: Blame it on California.

The land of CARB and The Governator imposes the harshest emissions requirements on diesel engines in the country. Selling any vehicle in the US is dictated by the ability to sell it in California. This is not necessarily a bad thing.

California’s Tier 2, Bin 5 emissions requirement for particulates (soot) and nitrogen oxides (NOx) are extremely strict. The requirement forces US-bound, passenger car diesels to be very clean. The T2B5 requirement closely mimics European EU5 and EU6 standards. AutoblogGreen has a great article with a graph that explains the standard here: Why can’t Americans have good, small diesels?

Q: Why do automakers expect consumers to pay a premium for small diesel engines in cars, SUV’s and compact light trucks in the US?

A: Price point is reflected by cost.

For a domestic manufacturer, the claimed cost per vehicle for a T2B5 compliant diesel over an equivalent gasoline burning vehicle is $2000 to $5000.

VW is the exception. VW has their TDI diesel firmly planted in its small sedan platform. With a base price of just $1300 over the base price of a gasoline-burning Jetta, the TDI version is an interesting option. Economies of scale are in effect here. VW builds a lot of TDI engines. An engine well regarded for good power and exceptional fuel economy. Maybe one day they will put it in one of their SUV’s sold here, but a compact pickup truck does not appear to be on the horizon.

Q: Why won’t domestic small truck makers develop a small pickup with a compact diesel engine despite the costs?

A: Chicken.

Emissions and cost both come into play here. Manufacturers will claim that the demand doesn’t justify the development of a compact diesel powertrain. The additional cost will then be passed on to consumers, whom they feel won’t want to pay a premium for the technology. Understandably, there is more to converting a current production pickup to diesel. The heat from a diesel engine must be mitigated and room for post-combustion emissions treatment must be made in addition to many other design considerations. This would force a significant redesign of current product or a new truck entirely. However, we would like to see the hard research data on actual demand.

If GM, Ford, and Chrysler were smart (they aren’t), they might put aside corporate pride and jointly develop a shared small diesel engine to put in their own small pickups. Or they could contract the design to a diesel specialist (International, Cummins, Cat, Daimler, etc.). Even more simply, they could revive the GM compact V-8 diesel that was nearly ready for launch before the plug got pulled earlier this year. Maybe they are just scared.

This is their loss. Mahindra is entering the mid-size truck market with their 4-cylinder, 2.2 liter, intercooled, common rail diesel. Mahindra gets to be the pioneer… or the guinea pig, depending on how you look at it.

Small Diesel Future

Certainly other manufacturers will monitor Mahindra’s success or failure in the coming year. Demand for the unusual truck from an unfamiliar source will be the litmus test for others looking to stick a toe in the diesel-powered, small truck waters.

If demand for small, diesel trucks overcomes any consumer hesitation about buying an unproven, Indian-made vehicle with uh… unique aesthetics, maybe a market does exist. Mahindra is poised to show North American consumers that diesel pickups aren’t the big, loud, stinky, and black smoke spewing, trucks and buses they dread getting stuck behind in traffic.

Mahindra will have the edge by being the first to the market, but surely others will follow suit and create a healthy level of competition (if things go to Mahindra's plan). And just maybe, Mahindra becomes the brand that makes diesels in the US a truly viable and readily available option. Time will tell.