India’s Mahindra Plans Truck Production in Ohio
February 11, 2008
The U.S. distributor for Indian automaker Mahindra & Mahindra Ltd. told dealers Monday it plans to assemble tens of thousands of light pickup trucks annually in Ohio starting in 2009, and to start selling a range of hybrid vehicles in the U.S. by 2010, the Wall Street Journal reported Monday afternoon.
Mahindra, which was defeated in a bidding contest by rival Tata for Jaguar and Land Rover, has partnered with Atlanta-based Global Vehicles USA, which will distribute the vehicles, establish marketing plans and manage a network of hundreds of dealers that have signed up to sell Mahindras throughout the U.S., the newspaper reported.
Global Vehicles Chief Executive John Perez laid out the latest strategy to dealers at a convention in San Francisco. Perez, in an interview with the Wall Street Journal, said the company is in final stages of talks with an assembler in the U.S., but declined to name the assembler, saying only it is not a major U.S. automaker.
Mahindra will send kits for the pickups from India to the U.S. Workers in Ohio will assemble the kits using additional parts from suppliers in the U.S. for the two- and four-door pickup trucks. By assembling the trucks in the U.S., the company avoids the 25 percent “Chicken Tax” on pickup trucks imported to the U.S. from outside North America, the paper noted.
Mahindra has been working on a plan to enter the U.S. market next year by offering three products — two pickups and one SUV that will be shipped as a whole vehicle from India, Perez told the Journal. The vehicles are expected to have a base price in the mid-$20,000 range and use diesel engines built by a major German auto supplier.
Perez told the Wall Street Journal that Mahindra is committed to selling each of its products with an optional hybrid-electric diesel engine about a year after launching in the U.S. He said the vehicles will be priced higher than conventional models, but the premium will be about half the premium established automakers tack onto their hybrid vehicles.
Posted by Michelle Krebs at 1:14 PM under Companies , News | Comments (11) | digg this | Seed Newsvine
The vehicles are expected to have a base price in the mid 20's? They need to save themselves a lot of grief and stay in India. With those prices this is a failed venture from the onset. Suggestion to Mahindra...look at your counterparts. Base truck low to mid teens, four door truck mid to high teens, SUV high teens to low twenties. The U.S. dealers shelling out cash for one of these franchises better do a reality check.
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Bike Europe (SAARC Countries)
Retreading Business (Indian, Asia & African Markets)
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Tyreman (India)
Posted by: Satnam Singh | February 18, 2008 at 10:56 PM
I don't think Mahindra is aiming for the current U.S. pickup truck market. They are probably going after the folks who have money to spend and want to "save the planet" with better milage. Also those who want a small truck for whatever reason (no new small pickups on the market). Mahindra may be betting that a fair number of people who bought a Prius would have bought a deisel pickup or deisel electric pickup if one was available. Interesting bet. We'll see.
Posted by: Eric | February 23, 2008 at 3:12 PM
Too bad about the negativity. I see it as the right truck. A "real" light-duty pickup. Long-bed, tie downs, diesel dependablity, 6speed, locking differential and the updated safety features. I currently own a Sonoma which is too light to safely tow a big trailer, performs miserably off the pavement (needs differential lock), no tie downs for loads and a truck box big enough for my lunch pail. This vehicle will replace my 1980 Toyota Hilux workhorse with 300,000 miles! Those who want a pickup to haul groceries should buy the Tacoma, Colorado,Ranger or Dakota. I haul real loads. I do not want to purchase, license and maintain a trailer in addition to a truck.
Posted by: Tom | February 24, 2008 at 4:44 PM
Finally! I have waited for another small truck with outside the bed tiedowns since I had the old Hilux way back when. My present 2001 Tacoma is a great workhorse with 160000 miles but they may just lose me to Mahindra if this truck proves itself.
Posted by: Ralph | February 26, 2008 at 12:19 PM
This truck will allow me to have both a commuter and hunting truck in one package.
If mileage is as good as claimed, I can sell my 79 VW Diesel Rabbit.
Posted by: Art | February 29, 2008 at 8:21 PM
I am concerned about the 60,000 mile warrenty where other Diesel mfg offer 5 years 100,000 mile warrenty.Granted we need a truck that gets 35mpg but we have to look at maintenance cost.I own a 2001 Dodge Cummins Diesel and at 72,000 miles the transfer pump failed and I would have had to pay $3,000 if not under warrenty.I would like to see test results on the diesel engine they are using and the durability.
Posted by: Johnny Tyson | March 14, 2008 at 8:39 PM
I would be really liking this truck except it has an auto trans. This thing needs the option of a manual trans. You have more control and I am willing to bet be a bit faster. Plus you can get better mileage with a manual trans. Maybe not highway but I know you can city. U drive both and if I am hauling a load I want to be able to downshift before going down hills. I want to be able to shift it myself. Plus a diesel has more heat to it than a gasoline engine and heat destorys auto trans. To bad they wont offer the manual trans it would also mean a lower price point and with a smaller truck many people don't mind it as much and if it got 3 mpg better it would be even more appealing. Showed it to a friend and he got excited until he read auto trans. Said he would rather have a stick in this size truck.
Just my thougths
Posted by: John | April 17, 2008 at 11:42 PM
I agree with John, I was hoping for a manual. Please give us a manual trans!
This truck will be welcomed by many. Toyota and Nissan small trucks are no longer true trucks. I do a lot of hauling with my Dodge Cummins diesel with 17 to 20 mpg, plus I have the safety and comfort of a full size. My friend with his 2006 Tacoma can not carry very much weight, it slows down on all the hills, is uncomfortable, suspension is bottomed out, and he only gets 16 mpg on gas. The difference is in the diesel. A smallish diesel, built heavy duty as the Mahindra is, will be very welcome.
Posted by: Gene | April 30, 2008 at 5:08 PM
I'd be really excited about a Mahindra truck right now except for the price and automatic transmission. If I could get an extended cab, 2wd with stick shift for 20 thou I'd seriously consider it. I don't need power windows, locks or back scratcher. Does anyone know if the japanese truck makers are planning to bring high efficiency diesel pick-ups to USA?
Posted by: Joe | May 03, 2008 at 5:44 AM
No japanese diesel pickups. Too expensive to compete. American diesel hybrids, specifically Dodge Cummins, expects estimated MPG at 19. Are you kidding? Sign me up for a mahindra diesel hybrid. Hope it has viton fuel seals and hoses so i can burn B100.
Posted by: dirk | May 06, 2008 at 3:55 PM