Mahindra May Build US Plant for Pickup Trucks

By Brendan Moore

08.31.2009

mahindra-logoIn yet another wrinkle in its American strategy, Mahindra and Mahindra may purchase, and then “build out” an existing factory in-country in order to manufacture the pickups it intends to sell in the United States.

Pravin N. Shah, executive vice president for Mahindra’s international automotive operations, told reporters, “We don’t need big volumes to assemble the pickup there (US) and we may do it.”

Mahindra currently owns three tractor factories in the US, the largest in Calhoun, GA.

The reason that Mahindra is considering US production is to avoid the 25% “chicken tax” on all imported trucks. The original plan, which would revert to the interim plan if Mahindra does set up a factory, was to import the trucks as knock-down kits and assemble the trucks in the US.

Mahindra’s strategy for American sales has been fairly fluid, with plans changing several times to date. Originally the plan was to start selling the trucks in early 2009. The trucks would have been subject to the whole 25% tariff.

The second plan was to sell the trucks in late 2009. Then, the knock-down kit plan was made part of the later launch date.

Now, apparently, the plan is to launch early 2010, and import the first trucks whole (with the 25% tariff) until production can be shifted over to a US facility.

But that could change.

Over 330 dealers have signed up to sell the clean-diesel mid-size pickups so far.

Mahindra is also planning to quickly follow their pickup launch in the US with a launch of their diesel SUV.

2008-mahindra-pickup-diesel

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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7 Comments

  1. Did Mahindra have that logo before Oldsmobile? Or the other way around? Either way, someone should be suing for infringement.

  2. small truck lik that with a deesal should get grate milage

  3. No idea about the trucks, but Mahindra tractors are very srong, very durable.

  4. Since Ferruccio Lamborghini was originally known for his tractors (still popular in Europe) can a Mahindra supercar be far off?

  5. International Harvester made great tractors and also made extremely tough half-ton trucks and 4WD short-wheelbase vehicles (the I-H Scout).

    The I-H vehicles made for consumer and light commercial use had some devoted owners because of their strength and durability.

  6. Yes, very good tractors from Mahindra. Very strong machines.

  7. Mahindra sell these pickups into Oz at a bargain basement price in their class. About AU$20K ($5K more for 4×4) plus on roads gets you into a 4×2 cab chassis Pik Up with the 2.5L common rail TDi……which is a hell of a lot cheaper than the others in its class (which would be a small Ford Ranger style segment in the US) over this way. That Oz figure adds up to about US$17K so hows that match up?

    They are on the ‘rough’ and ‘rustic’ side of the segment too. But most of the basic safety gear is built-in!

    http://www.mahindrapikup.com.au/default.aspx

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