Mahindra & Mahindra: The Story Of “Rise”

[visran]

Mahindra ‘SA’s top growth brand’

Mahindra SA, operational since 2004, is claiming to be the fastest-growing automotive brand in South Africa.

The automaker quotes the findings of RGT Smart, a Port Elizabeth-based automotive market intelligence company, which plotted sales growth over a five-month period to the end of May 2012 and compared this with the brand’s status at the end of May 2011.

It determined Mahindra that grew by 124% on combined sales of passenger vehicles and LCVs over this period – with sales increasing from 699 to 1563 units – to become the fastest-growing automotive brand in SA in its segments.

Next best was Jaguar, with a 94% growth rate, Kia was third and Jeep, fourth. The survey, however, calculated the sales estimates of non-reporters to Naamsa – Kia, Hyundai and Chery.

'SUCCESSFUL TURNAROUND'

“This is very encouraging,” commented Mahindra SA’s CEO Ashok Thakur. “We are seeing the fruits of a comprehensive and successful turnaround strategy that put the company in a strong position for growth after the economic woes of 2008/9."

Another key factor, according to Thakur, was the buyiout of local company African Investments (which held 49% in the company) by Mahindra & Mahindra to make the South African division a wholly-owned subsidiary.

The introduction of new models such as the XUV500 SUV and the Genio pick-up as well as special editions of existing models, had boosted interest in the brand, while big improvements had also been made in terms of working with the dealer network to ensure a higher level of parts supply and improve general levels of servicing, Thakur continued.

Mahindra SA’s dealer has 56 dealers (15 added since January 2012) and 53 are already operational and the automaker hopes to double its sales during 2012.

“We are aware that this is a faster growth rate than the average for the industry, but are confident of being able to achieve these sales.” Thakur said.

 

[visran]

Re: Mahindra ‘SA’s top growth brand’

Mahindra SA has been named South Africa's fastest-growing automotive brand and now hopes to capitalise on its growth by increasing its model range and making them more price-competitive.

So, here comes the Scorpio Pik-Up Loader.

it costs R149 900 and is powered by a 2.5 turbodiesel engine capable of 74kW/258Nm and drives through a five-speed manual gearbox.

REMOTE LOCKING

The new model benefits from style upgrades in the form of new headlights, a bonnet scoop, wheel covers and mud flaps. The interior has an adjustable steering column, vinyl-covered seats, eyewear holders, map pockets and remote-controlled locking.

Ashok Thakur, CEO of Mahindra SA, said: “We've had numerous requests from customers to add a ‘no frills’ workhorse model to our Scorpio one-ton Pik-Up range and the result is the Scorpio Loader.

“Our latest price positioning enables us to undercut the prices of the traditional major players in the SA bakkie market while still offering a very robust, reliable and durable product that has been well proven operating in South African conditions.”

 

[visran]

Re: Mahindra – The Story of “Rise”.

Mahindra & Mahindra Ltd. (M&M), a part of the USD15.4 billion Mahindra Group, has strengthened its global presence over the past two years with exponential growth recorded. The company’s exports have grown in the Asia-Pacific region, Africa, South and Latin America and USA. The company’s Auto exports grew by 70 percent while Tractor exports grew by 16 percent in the financial year ending March 2012.
Mahindra South Africa, which was established in 2004, sold 1761 vehicles in F11 which grew to2558 vehicles in F12, an increase of 45 percent. The company’s product portfolio includes Bolero Pick Ups, Scorpio Pick Ups, Genio Pick Ups, Scorpio SUV, Xylo MPV, Xylo panel vans and Thar, and the new Mahindra XUV500 which was simultaneously launched in India and South Africa. After a successful launch, the Mahindra XUV500 was showcased at the Johannesburg International Motor Show where the media got an opportunity to test drive the vehicle. This Cheetah inspired SUV attracted a considerable amount of interest with over 100 units being retailed per month, making it one of the top 10 compact SUV brands. The Mahindra XUV500 has also been perceived as bringing an urban touch to the Mahindra line-up in South Africa which primarily consists of tough off-roaders. In other African countries, M&M’s auto exports grew by 39 percent. M&M Ltd. began exporting tractors to Africa in 2004-05. Tractor exports in Africa grew by 77 percent in FY’12.

In the current financial year, M&M expects to almost double its volumes in the LATAM region, and expects sales to cross the 10,000 mark in F13. Chile and Brazil are strategic markets in this region. The company’s South American footprint encompasses Brazil, Chile, Paraguay, Uruguay, Peru, Ecuador, Columbia and Central America with the Scorpio range of SUVs and Pick Ups.

In North America, Mahindra USA (MUSA), a wholly owned subsidiary of M&M, which sells the entire range from 18 HP to 85 HP tractors, has doubled its billings from 4,823 tractors in F10 to 10,012 tractors in F12. MUSA successfully completed its 0<85 HP tractor portfolio with the launch of the revolutionary new Mahindra Max the industry first true sub-compact and mid-compact tractor. Since 2006, M&M Ltd. has been working on the development of a vehicle for the US market. However, it recently decided not to proceed further with the project due to changes in the US regulatory and market situation. M&M will continue to monitor the US situation and remain flexible with its approach to this market.

Sri Lanka vehicle volumes grew almost three-fold in F12 alone. The Maxximo’s market share in Sri Lanka increased from ~ nil to 29 percent in one year. Mahindra launched the Mileage Ka Master range of tractors in Bangladesh and Nepal inF12. Among Asia Pacific countries, M&M Ltd. exported 2359 tractors to Bangladesh in F12. This was the highest number exported till date. The Mahindra Swaraj brand also grew handsomely in the SAARC countries with 12 percent annual growth and highest ever exports of 1800 units.

Mahindra & Mahindra Ltd vehicle exports almost triple in two years | WheelsUnplugged

 

[visran]

Re: Mahindra – The Story of “Rise”.

Auto major Mahindra & Mahindra has shelved the development of a vehicle meant for the US market citing regulatory issues and market situation.

"Since 2006, M&M has been working on the development of a vehicle for the US market. However, it recently decided not to proceed further with the project due to changes in the US regulatory and market situation," the company said in a statement.

The company will continue to monitor the US situation and remain flexible with its approach to this market, it added.

The auto major had planned to enter the utility vehicles market in the US around 2008-09 but ran into problems with erstwhile exclusive distributor Global Vehicles dragging it to court over delay in launch of pick-up truck based on the Scorpio platform.

Earlier in June this year, a group of automobile dealers in the US had filed a lawsuit against M&M, accusing fraud, misrepresentation and conspiracy that the Indian firm denied.

According to the lawsuit, "Mahindra duped hundreds of US auto dealers and walked away with more than $60 million in cash and trade secrets".
It further said M&M had "obtained $9.5 million in fees from the dealers" with a promise that products from the Indian auto maker would be launched in the US by 2008.

M&M had said it planned to launch its pick-up trucks in the US in early 2009, but got delayed due to regulatory issues. The entry deadline was revised twice and then to end of 2010, which too was missed.

In March this year, M&M had said an international arbitration panel ruled in its favour in the case against GV, the firm that was to sell its vehicles in the US.
Atlanta-based GV had claimed that it spent close to $35 million in preparation for the launch of the Mahindra vehicles in the US and had signed with as many as 360 dealers nationwide.

The case was then referred to the London-based arbitration panel.
M&M and GV had entered into an agreement on September 28, 2006, according to which the latter became the sole distributor of the Indian company's motor vehicles in the US.

Mahindra shelves development of vehicle for US market

 

[riyachouhan]

Re: Mahindra – The Story of “Rise”.

Mahindra is very reliable company, recently my father planning to buy Mahindra XUV 500.
recently i have heard the news that Initial reports as well as an official release by Mahindra had said that the Verito compact sedan will be launched later this year during Diwali but as per the latest information, a refreshed version of the Verito is being launched on the coming July 25 prior to the launch of Verito CS.

 

[visran]

Re: Mahindra – The Story of “Rise”.

Tata Motors, once the country's second biggest passenger vehicle maker, is skidding on Indian roads in the wake of rising competition. After losing the second position to Hyundai a few years ago, it has now slipped further and fallen behind fellow Indian player Mahindra & Mahindra (M&M).

M&M, which is a leader in the utility vehicles and SUV space, has been growing rapidly over the last few months. M&M has moved to the third position in the Indian passenger vehicle market, riding on higher demand for its vehicles , including the newlylaunched XUV500 SUV. Maruti Suzuki remains the market leader, followed by Hyundai.

The fall of Tata Motors is alarming, considering that the company was hoping to recapture its second position after the launch of Nano in 2010. The world's cheapest car, however, failed to cut much ice and has been a slow mover, robbing Tata Motors of any chances to better its position. First quarter sales figures establish the lead of M&M over Tata Motors.

According to company figures, M&M sold 61,504 units during April-June 2012, with sales growing 28%. In contrast , Tata Motors' sales slipped 7% to 60,405 units in the same period. Out of the first three months of the current fiscal, sales of Tata Motors have fallen in two months (April and June), and single-digit growth was witnessed in May. A questionnaire sent to Tata Motors remained unanswered.

"For a large percentage of car buyers, Tata Motors is no longer an option. The company is selling products that do not meet the expectations of buyers," said Deepesh Rathore , MD at IHS Automotive, a consulting firm. "A large chunk of sales for Tata Motors comes from taxis, which is limited in volumes and is cyclical in nature."

The recurring incidents of fire on Nano after its launch only made things difficult for Tata Motors that has since come up with a variety of offers and schemes to prop up sales of the model. However, the market has not shown any perceptible difference in its choice for the brand. Cumulative sales of Nano in the first quarter were flat at 22,140 units, as per the sales statement put out by Tata Motors on July 2.

Other models of the company are also struggling. While sales of Indica range stood flat at 17,712 units in the April-June quarter, the volumes of the Indigo family were lower by 33% at 9,724 units. Sales of MPV/SUV portfolio — that include Sumo , Safari and Aria — have also been flat at 10,829 units in the same period.

For M&M, the story is different. The success of XUV500 and good volumes for products like Bolero has seen the company chalk out aggressive growth plans. "We are happy to have achieved a growth of 23% in the first quarter, given the pressures and various uncertainties , which the auto industry is currently facing. We expect the demand for utility vehicles to continue during the current financial year," Pravin Shah, chief executive of M&M's Automotive Division , said.

M&M pips Tata Motors to 3rd slot in the passenger vehicle market - The Economic Times

 

[raj_5004]

Re: Mahindra – The Story of “Rise”.

M&M has no small vehicles. Without cheap and small vehicles, I cant see it overtaking Maruti and Hyundai. The mini Xylo will help to some extent, but I guess it will only increase the gap between M&M and TATA.

Hyundai has 4 small cars whereas Maruti has 9!!! M&M needs to bring in small hatchbacks to compete. That said, I feel the forte of M&M is UVs and I feel they should concentrate on that only.

 

[ERTIGA_ZMR]

Re: Mahindra – The Story of “Rise”.

M&M has no small vehicles. Without cheap and small vehicles, I cant see it overtaking Maruti and Hyundai. The mini Xylo will help to some extent, but I guess it will only increase the gap between M&M and TATA.

Hyundai has 4 small cars whereas Maruti has 9!!! M&M needs to bring in small hatchbacks to compete. That said, I feel the forte of M&M is UVs and I feel they should concentrate on that only.

Raj you are talking my lines, somewhere in 2005 Jan I was being interviewed by Mahindra Panels in college placement. After all technical questions one of the panel Babit Naik asked me what new you would like to add to M&M. As a 21 years old lad from middle class family where Maruti Zen and Santro used to be pride possesion, I told them that M&M should develop some small car ( that time I was not aware of terms like hatchback or sedan) to target wider range of Indian salried population who can afford to have Brand Mahindra. This was the answer which gave me job in M&M Kandivalli unit though I didn't join as got another offer from L&T.

With proud I can say that I am part of Mahindra group( my current company).

 

[visran]

Re: Mahindra – The Story of “Rise”.

According to ACI Mahindra Scorpio automatic's production has been stopped from this month as DSI, their sole supplier of Auto trannies has stopped supplying to M&M (and SsangYong). and it also states that Work on Xuv500 automatic also put on hold.

I wonder how they will service the existing Scorpio auto owner's?

 

[raj_5004]

Re: Mahindra – The Story of “Rise”.

There are talks that DSI is bankrupt. I have always felt that M&M should bring their own A/T boxes or take help from SsangYong who already have the technology to make A/T boxes. Anyways, the box from DSI which is used in the Scorpio was not that great...

 

[visran]

Re: Mahindra – The Story of “Rise”.

There are talks that DSI is bankrupt. I have always felt that M&M should bring their own A/T boxes or take help from SsangYong who already have the technology to make A/T boxes. Anyways, the box from DSI which is used in the Scorpio was not that great...

+1 raj, Even i feel Mahindra should start working on Auto box on their own, Scorpio was the only SUV with AT option which was available at sub14L price range and now even that is out of the market

 

[visran]

Re: Mahindra – The Story of “Rise”.

Work together with management, Mahindra & Mahindra's Keshub Mahindra tells workers

Diversified conglomerate Mahindra & Mahindra's outgoing group Chairman Keshub Mahindra today asked its workforce to work together with the management in order to scale newer heights.

The comment from Mahindra, who has been the Chairman of the group for the last 45 years, comes at a time when rival automobile firm Maruti Suzuki is facing its one of the worst worker-management relationship that escalated into a severe violence, killing one senior official and injuring 100 others.

"No matter what you dream and what you wish to achieve, you will not achieve it unless you work together. My request to you is that in the years to come, please work together," Mahihdra said while addressing the workers at the Kandivali plant in Mumbai.

In his last visit to the plant as the Chairman of the group, 88-year old Mahindra emphasized the need of a cordial and peaceful relationship for a healthy progress of all the stakeholders.

M&M Chief People Officer (Automotive and Farm Equipment Sectors) Rajeshwar Tripathi said: "When it comes to dealing with people in difficult situations, what is important is to deal with the issue and not with the person. Don't hurt the dignity of the person but focus on the issue and try to find a win-win situation."

Expressing similar views, Mahindra Workers Union President Rajeev Sawhney said: "We have had reciprocal relationship with management. Both the management and the workers will have to understand that healthy industrial relationship is paramount."

Satish Sawant, a machine operator at the Kandivali plant that has about 5,000 employees said the workers never had any problems with the management.

"...there won't be problems in future as well because both the management and the union discuss issues at transparent manner and take decisions together which the workers follow," he added.

Mahindra, who has remained as one of the Directors on Mahindra & Mahindra's board for 63 years, will retire as the Chairman on August 8. His nephew and the current Vice Chairman and Managing Director Anand Mahindra will take over the baton from him thereafter.

Automobile Industry India, Auto Industry News, Automotive Industry, Automobile Market | Industry News - Economic Times

 

[visran]

Re: Mahindra – The Story of “Rise”.

Mahindra USA sponsored NASCAR driver, DJ Kennington recently won his fifth consecutive race in the 2012 NASCAR Canadian Tire Series season. St. Thomas, ON racer, DJ Kennington and the #17 Castrol Edge Dodge team came out on top at the Auto Clearing Motor Speedway in Saskatoon, Saskatchewan. This comes close on the heels of his win at the Edmonton Indy, prior to which Kennington tasted victory at the MotoPlex Speedway near Vernon, BC.
“We are very proud of DJ and DJK Racing and are thrilled to be a part of this team on its championship bid,” said Cleo Franklin, Mahindra USA’s Vice-President, Marketing and Strategic Planning. “DJ’s passion and commitment to motorsports racing are proven by his continued success on the track. His dedication to racing aligns with Mahindra’s Rise Philosophy to accept no limits, employ alternative thinking and drive positive change to help transform the lives of our stakeholders, customers and communities across the world.”

The #17 Castrol Edge Dodge driver began the 250 lap event from the fifth starting spot and quickly moved into the top three. Remaining near the front of the field for the entire event, Kennington inherited the race lead on lap 195 and held off the challenges of the #02 and the #84 to claim victory. “I simply can’t believe it” said Kennington. “We didn’t have the best car tonight, both those guys raced me hard but clean and we managed to hold them off and put this Castrol Edge Dodge in victory lane again” he added.

The triumph is significant for several reasons. With this latest victory, Kennington again sets a new standard for consecutive race wins in the NASCAR Canadian Tire Series with five in a row. The #17 Castrol Edge Dodge driver equals the NASCAR Touring Series mark of five straight wins held by Ricky Craven who recorded five in succession in the K & N Pro Series East in 1991 along with Richie Evans and Mike Stefanik who achieved five in a row in 1985 and 1997 respectively. Wednesday’s win at the Auto Clearing Motor Speedway is the 16th victory of Kennington’s NASCAR Canadian Tire Series career and moves him into top spot with the most series wins. “If you asked me I never would have thought it was possible to take over the title this year, with so many good racers in the series,” said Kennington.

As always, the #17 Castrol Edge Dodge driver was quick to thank all those who helped make his milestone night possible. “I’ve absolutely got the best team in the game” he stated. “These guys work so hard every week, I share each win with all of them. And there’s no way we can do this without the fantastic support of our sponsors, Castrol Edge, Mahindra Tractors, Hitachi Power Tools, NPP, everybody that supports us and makes this possible, we share this with you also”. With his latest win, DJ Kennington increases his lead in the overall championship point’s standings to 41 points over second place with five races remaining in the season. DJ Kennington and the #17 Castrol Edge Dodge team will be back in action on August 4 & 5 at the Grand Prix of Trois-Rivieres. This is the fourth consecutive year Mahindra has sponsored the Kennington team. In 2010, DJ Kennington won the Canadian Tire Series Championship and in 2011, DJ narrowly missed back-to-back series titles with a second place finish.

 

[visran]

Re: Mahindra – The Story of “Rise”.

Mahindra bags Title Sponsorship rights of Sri Lanka Premier League.

There will be 24 games in the Mahindra Sri Lanka Premier League and each team will be allowed a maximum of 18 players. Teams will be allowed to field a maximum of four foreign players per game with the remaining being local players. The Man of the Match in all 24 matches will receive the title of “Mahindra Man of the Match” while the ‘Man of the Tournament’ will win himself anXUV5OO.

 

[visran]

Re: Mahindra – The Story of “Rise”.

Mahindra & Mahindra chairman Keshub Mahindra, who was a director for 64 years and chairman for 48 years, has handed over the reins of the company to Anand Mahindra at the conclusion of the company’s 66th Annual General Meeting today. He will be the Chairman Emeritus, advising the company, with Anand Mahindra as CMD. He also announced the appointment of the New York-based Dr Vishakha Desai, president and CEO of Asia Society, and Vikram Singh Mehta, chairman of the Shell Group of Companies in India since 1994, on the board of directors.

Commenting on the company’s results, Keshub Mahindra said: “I do want to stress that it has been a very difficult year and a most challenging one. There have been problems stemming from many circumstances abroad like the state of the sovereign debts of many advanced economies, turmoil in the Middle East, weakening global economic environment and our rising fiscal and current account deficits. Our currency continues to weaken with a high inflation rate and prolonged uncertainties in respect of our policies and regulations. In spite of this turbulent and uncertain period, our business continued to grow. In the automotive sector, we had a growth of nearly 29 percent, while in the case of tractors, despite the sluggish conditions in the last few months, in the year gone by, the growth was 10 percent. We acquired majority holding in South Korean SsangYong Motor Company and inaugurated our world-class engineering and R&D centre, the Mahindra Research Valley (MRV) in Chennai.”

He added, “The risks of a full-fledged crisis in Europe remains high, Greece is in a dire state, Spain is showing signs of recession and Italy is showing unacceptable figures of stability. China is showing signs of slowing down, oil markets are in a flux. At the same time, weak domestic macros – high inflation, large fiscal and current account deficits – and coalition politics continue to constrain policy actions critical to supporting growth. Any growth below 7 percent cannot even begin to meet our social needs. Uncertainties of our policies and our vacillation on major reforms together with the south west monsoon remaining weak, adds to our woes. The future indeed looks challenging, but there is hope that in the latter part of the current year. One might see a change leading to growth and the containment of our revenue and fiscal deficits. I also expect that the government will move to clarify the uncertainties in many sections of our economy and to bring back focus on providing a platform for the growth of our economy which is critical for bettering the quality of the lives of our people.”