Mahindra Trucks Coming to America: Indian Style

Mahindra’s agriculturally influenced styling is an honest reflection of its tractor expertise. Some see the beauty in a vehicle which has clearly been designed with function as the top priority. Mahindra’s farm implement roots are well represented in the style of the Mahindra Pik-Up and Scorpio SUV. Sharp-edged lines of the cab and SUV bodies abruptly transition into a rounded nose fitted with composite headlamps. The style is… unique. The combination manifests itself as somewhat of an odd historical timeline of Japanese mini-trucks from the late-1970’s to the mid-1990’s. It’s been a long time since American’s have seen external tie-down cleats on a truck box.

The question for Mahindra is: Will the current styling for Mahindra trucks translate into sufficient US vehicle sales?

The trucks are unique and certainly carve a niche, but as noted in a previous post, Mahindra will likely be faced with absorbing the Chicken Tax into their North American operations in some way. If that cost has to be passed on to consumers through an increase in vehicle price, Mahindra must acknowledge that they have reduced their niche further than previously anticipated.

Styling is a key element in an American culture that has come to expect a high level of style in even the lowest priced products. As seen in the lead photo, Mahindra has launched a facelift for the Scorpio this year (photos at www.cubiccapacity.com). This alone is probably not enough to change many initial American impressions. In another previous post, Mahindra Planet noted that Mahindra does plan a completely new Scorpio design for 2010, but it seems that the current pick up will come to the US as it is.

There are glimpses of amazing automotive design coming out of India (do a Google search!). International companies like GM and Renault have design centers based there. Unfortunately the Pik-Up and Scorpio do a bit of a disservice to the Indian auto design community. While these vehicles are a testament to the world market aspirations of Mahindra and the Indian auto industry, it is not putting their best foot forward in design and styling.

First impressions will mean a lot to Mahindra. If the trucks offer exceptional performance and value for their price, many will likely accept the styling as it is, but it will not be everyone’s cup of tea. To grow their US market share, Mahindra will not only need to deliver on quality, service, and performance, they will also have to create a signature design direction and further develop styling that stands out in the US landscape.

Mahindra to Initially Build Trucks for US in India

Mahindra’s recent decision to delay assembly of the US market pickup truck at a facility in Ohio is certainly a disappointment. It’s easy to understand their decision on several levels. Instability in the US economy being a primary concern, in addition to avoiding any launch delays due to issues with logistics or assembly.

On the other side of that, it seems as though Mahindra would want to do whatever they could to avoid the 25% Chicken Tax the US government will place on every truck made in India and brought here for sale. This also appears as somewhat of a cop out in committing to planting manufacturing infrastructure in US soil. Mahindra has spent considerable time, money, and effort establishing well over 300 dealerships in the US, and ensuring that the trucks will meet all federal requirements for emissions and roadworthiness, as well as extensive customer research.

Mahindra is claiming that the additional tax levied against each truck reaching these shores will not be added to the sales price. It is unclear whether they intend to eat this tax themselves or pass all or a portion of it onto their dealers. Which would clearly not be well received after asking them to commit to building dealerships well in advance of acquiring inventory.

Hopefully, the future is bright for Mahindra’s start in the US. It would be nice to see them get a strong foothold here and in the very near future assemble or completely build vehicles in America with a modern facility and a solid workforce. Mahindra Planet would like to see that 25% go directly into the pockets of US-based employees, rather than go as taxes directly into the government’s bottomless pit and hope it gets passed along to the rest of us.

All New Mahindra SUV for 2010, Pickup on Target for 2009 Launch

Confirmed in a recent interview in India’s Business-Standard, Mahindra & Mahindra Automotive Sector President, Pawan Goenka says Mahindra is still on track for the launch of the Mahindra Pick Up in late 2009 no matter what the world economy currently looks like. Goenka states that, “The downturn is perhaps one of the best times to launch new products as it creates a buzz around it. The current slowdown in the global economy will not deter our launches,”

Goenka also states that an all-new Mahindra SUV, which will replace the current Scorpio, is currently being designed. He expects the new SUV (which he does not specifically call Scorpio) will be on sale in India mid-2010 and will be sold in the US not long after.

Of significant note is that Goenka’s statements allude to the new SUV being a vehicle specifically targeting the US market. Based upon the ‘love it or hate it’ US feedback for the still un-named Mahindra pickup’s styling, one can speculate that the new SUV’s aesthetic would be geared to more of a North American palette.

It can also be surmised from the interview that the new SUV may not be named Scorpio. This could open the door for the pickup to be called Scorpio in the US. Scorpio would be a great name for the rugged and utilitarian pickup truck which is currently called Pik Up in world markets, after it was possibly going to be called Appalachian in the US.

Link to Goenka Interview