Mahindra files a motion to dismiss the US lawsuit

The country's largest utility vehicle maker Mahindra & Mahindra (M&M), announced on Wednesday that it has filed a motion to dismiss the lawsuit by its US based distributor Global Vehicles over the inordinate delays in the launch of its Prospective sports utility vehicle (SUV) Scorpio and pickups in that market. The motion has been filed in the US district court for Northern Georgia, said company in a statement.




The US based distributor had filed the lawsuit on 14th of June in which it claimed of spending about $35 million in the arrangements for the launch including the initial fee of $8.5 million for distribution appointment. The firm had also claimed that it had signed 360 dealers across the nation to provide a strong dealership base to this pick-up. The claims further include the expenditure of more than $60 million in franchisee fees to acquire the right to sell M&M's vehicles.

Mahindra had said that the launch has been delayed as the vehicle needed to be tested extensively on American roads before acquiring the clarification from US regulators.

The company added in its statement that it is diligently working towards satisfying all US homologation requirements and intends to submit its final application as soon as possible. According to company the vehicle will be rolled out in the US market by the end of the year 2010.

Source:- Mahindra files a motion to dismiss the US lawsuit - New Cars

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Mahindra Logan to be launched in a new avatar by 2012

India's largest utility vehicle (UV) maker Mahindra & Mahindra is planning to launch its Logan sedan in a completely new avatar by the end of the year 2012. The new variant will have a length of less than four meters which will enable it to qualify for a lesser excise duty segment. Mr Rajesh Jejurikar, chief executive (automotive division) of the company said in a statement given to a leading news daily that company is planning to launch a restyled Logan within the next 18 months.




Mahindra Logan was launched in India in the year 2007 as a Joint Venture between Mahindra and Renault. But due to some differences related to the pricing and designing of this car, both the companies parted ways in April this year. Since its launch in 2007, the Logan Sedan has been struggling to make its mark in the segment following the drooping sales figures over the years.

With the sales dipping to mere 5332 units in the last fiscal, Mahindra has been planning to reduce the size of the car so that it could qualify in the small car segment and the company would be able to tape down on excise duties. The company has recently announced a discount of Rs 80,000 on the Mahindra Logan, in a bid to boost its continuously decreasing sales figures in India.

Source:- Mahindra Logan to be launched in a new avatar by 2012 - New Cars

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Mahindra's first entry-level bike soon in India

Mahindra & Mahindra, known as best SUV manufacturer in India, now going to enter into the motorcycle production and sales in the Indian auto market. The company has already launched its two new scooters - Mahindra Duro and Mahindra Rodeo. Mahindra is now all set to spread out its portfolio and launch its first entry-level motorcycle in the festival season. Both scooters are getting excellent attention from the Indian buyers.



According to the news sources the new Mahindra bike is known as internally codenamed A02 and the platform of the new model will be based on old Kinetic Boss. It is expected to be available between Rs. 35,000 to Rs. 40,000. Mahindra had already displayed its new concept motorcycle at the 10th anniversary of Delhi Auto Expo which was held from 5th January to 11th January 2010 in New Delhi.

The company has not yet announced officially regarding the specification and features of this bike. But, it is told that the new engine will be imported from China, which will considerably lower the development cost for the new bike. Mahindra will see tough competition with another entry-level segment motorcycles in India. Meanwhile, Suzuki Motorcycles has recently announced the launch of two new superbikes in India including Suzuki GSX-R1000 and Suzuki Bandit 1250S.

Source:- Mahindra's first entry-level bike soon in India - Bikes in India

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Mahindra First choice launches special monsoon proof package

Mahindra First Choice Services Ltd. (MFCSL), a leading player in the business of used cars in India, has launched a special monsoon proof package in the country. Under this scheme, the company will offer a unique service package to visiting customers' cars which includes adjustment and replacement of wiper blades, beam adjustment and headlight focusing, alignment of wheels, self starter and other electrical check, mud flap check and alignment, an anti-rust treatment for all steel accessories, cleaning and checking of air filter, a complete shampoo wash, sprinkle test for the car for the detection of water leakage in the cabin, battery check along with jelly application, self starter and other electrical check, and alignment and check-up of mud flap.



Mr Shiv Kiran, COO of Mahindra First Choice Services Limited, said on the occasion that the Mahindra First Choice Services is known for its stringent quality standards and customer focused approach to business. The monsoon proof package will offer a range of services and is a complete ‘Value for Money’ proposition at an unbelievable price of Rs. 149. This package will make company's customers’ cars ready for the travel hazards they could face during the monsoons. In addition to this, customers also get to take home an attractive umbrella absolutely free.

While the package has already been launched in Mumbai and Hyderabad, it will be launched in Delhi on the 21st of June this year.

Source:- Mahindra First choice launches special monsoon proof package - New Cars

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M&M and Proton plan for a Joint Venture

Talks between Indian automotive giant Mahindra & Mahindra and Malaysian auto biggie Proton have started again, concerning the entry of the latter in the Indian Market. The two companies were in talks before this, in the year 2007. However the meeting bore no fruit and was unavailing. While the news about the two having a joint venture soon, has spread like wildfire, the spokesperson from M&M refused to comment on the same. However sources confirm that there is a good chance of a joint venture between the two companies.



When looked at Proton's annual report, it clearly mentions the company's plans of trying its hands in the Chinese and the Indian auto market.It also revealed its plans on taking a step towards and focusing on regional markets with high growth in ASEAN with an aim to set up a Completely Built-Up (CBU) market and India, China and Iran to have a Completely Knock Down (CKD) market. Proton also looks at the Indian economy as a strong one since it was more adaptable and responsive to the world wide economic recession.

Mahindra on the other hand is expanding fast by exploring new markets. The company ended its JV with Renault to re-launch Logan with its own name. M&M has also taken over 50 percent stake in Reva Electric to manufacture electric cars to be launched in future. Another achievement that the company can boast of is the inception of the revamped Scorpio model in the US market, making it the first auto company to have its model on the American soil.

Source:- M&M and Proton plan for a Joint Venture - New Cars

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Anand Mahindra terms US lawsuit against M&M as 'groundless'

India's leading auto-maker Mahindra & Mahindra, which is facing a legal battle in the US market, has termed the lawsuit filed against it as 'groundless'. "Yes, an unfortunate development. Groundless charges; Can't comment since now legal", tweeted Mr Anand Mahindra, Vice-Chairman of M&M, in a response to the question asked about the lawsuit filed by the US dealer.



Global Vehicles, an Atlanta-based distributor of the Mahindra's upcoming pick-up vehicles in the US market, has filed a lawsuit in an Atlanta District Court over the excessive delay in the launch of this vehicle. The pick-up was scheduled to be launched in year 2009 but Mahindra had revised the launch date to the end of year 2010 by saying that the vehicle needs to be tested extensively on American roads before acquiring the clarification from US regulators.

When inquired, if the company will be able to launch the vehicle in US on the scheduled time after this lawsuit, M&M spokesperson stated that Mahindra remains committed to launching its products in the US market. This matter is now under litigation and the company would not like to comment further at this stage on these unfortunate developments.

US based distributor had filed the lawsuit on the 14th of June claiming that it has spent about to $35 million in the arrangements for the launch including the initial fee of $8.5 million for distribution appointment. The claim further includes the expenditure of more than $60 million in franchisee fees to acquire the right to sell M&M's vehicles.

Source:- Anand Mahindra terms US lawsuit against M&M as 'groundless' - New Cars

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Mahindra to restructure the Logan platform

Mahindra & Mahindra, the top utility vehicle(UV) maker of India is speculated to enter in a dialogue with its former joint venture partner Renault, in a bid to restructure the platform which was used for manufacturing of the Logan sedan. Mahindra group has indicated that it is looking forward to use this reformed platform in operations other than production of passenger cars.



Both these companies parted ways in April 2010, after Renault sold its stake in JV to Mahindra Group, due to various issues on prising and designing of Logan. Where the Mahindras were keen on reducing the size of the sedan in order fulfill the criteria of the small car segment, Renault wanted to keep the original size of the car.



To develop a new Logan platform, the company will have to negotiate further with Renault, as there would be more financial constraints involved. The company, first needs to get a go-ahead from Renault before it makes any changes to the car, as per the statement given by a senior company official to a leading news daily. On the other hand, Renault India said, that the company will lend its brand name only till the end of this year, as from January 1, 2011 it would be M&M’s responsibility to rebrand the car. Renault has signed a technical license agreement and has not sold the platform to M&M, which restricts Mahindra to make any free changes.

Source:- Mahindra to restructure the Logan platform - New Cars

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M&M faces a legal battle in US

Global Vehicles, a distributor of Mahindra & Mahindra's upcoming pick-up for US market, has sued the Indian auto giant for an inordinate delay in launch. Global Vehicles has filed a lawsuit with the Atlanta District Court regarding complaints of excessive delay in rolling-out this vehicle in the US market. Mahindra had recently announced that the launch of its pick-ups in US market will only be done by the end of this year. It's been almost a year since the company is rescheduling this prospective launch for the US market.



The company had said that the launch has been delayed as the vehicle needs to be tested extensively on American roads before acquiring the clarification from US regulators. The US based distributor had filed the lawsuit on 14th of June in which it has claimed of spending about to $35 million in the arrangements for the launch including the initial fee of $8.5 million for distribution appointment.

The firm has also claimed that it has signed 360 dealers across the nation to provide a strong dealership base to this pick-up. The claims further includes the expenditure of more than $60 million in franchisee fees to acquire the right to sell M&M's vehicles. Mr Pawan Goenka (the president of Mahindra's Automotive arm) had said a few days ago that the company wanted to give the best product to the American consumer and thereby wanted to be absolutely sure on parameters before its launch.

Source:- M&M faces a legal battle in US - New Cars

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New SUV from Mahindra

The leading Sports Utility Vehicle (SUV) maker Mahindra & Mahindra is all set to launch a new SUV in India by the first quarter of FY '12. The all new SUV will be assembled with latest features and technology; it will be much better than it's latest product Mahindra Scorpio, to be precise.

"We will be launching the vehicle in the first quarter of FY 12," Mahindra and Mahindra's Auto and Farm Equipment Sector's President, Pawan Goenka, told the reporters on the sidelines of an event here.

He further added that the new SUV, which is in the R&D stage, will be "more premium" than the company's current offering -Scorpio.

The product line of Mahindra & Mahindra includes SUV, MUV, UV, three-wheelers, mini-truks and pick-ups. The company has launched Mahindra Xylo (MUV) and special edition of Mahindra Scorpio a few months back. Mahindra Scorpio, Mahindra Bolero are the most popular vehicles in the country in their respective segments.

Source:- New SUV from Mahindra - New Cars

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Mahindra's due diligence on Ssangyong to start soon

Mahindra and Mahindra, is speculated to start the audit for prospected investment in the South Korean auto major Ssangyong Motor within two days. The plan comes as a company's step to enhance and expand its operation overseas.

Mr. Goenka, from M&M, the country's largest sports utility manufacturer, expressed his enthusiasm quoting that Ssangyong is expected to be a good fit for the company as the investment is supposed to open doors for newer markets.



Ssangyong, is supposedly offering buyers across Asian and Russian markets, access in its stakes. The company entered bankruptcy protection in February 2009, and presently 7 parties from these markets have already expressed their interest in controlling a stake in the South Korean auto maker assessed at, at least 700 billion won.

Source:- Mahindra's due diligence on Ssangyong to start soon - New Cars

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M & M Plans To Enter Small Car Segment

The company Mahindra and Mahindra is thinking to enter into one of the popular segments of India, that is, the small car segment of India. The company has taken its stake in Reva Electric Company to introduce a car. This will be an eco-friendly car. There are plans that the company is willing to invest over Rs. 1000 crore in this segment.

The company is planning to bring its small car very soon. It aims at introducing the small car by the year 2013-14 . It has been said that the car will be priced in a bandwidth of Rs. 2-5 lakh. The company is also working upon the building of a new platform and it is also deciding on the new cars which are codenamed as S101, S102, S103 and S104.




The small car, which the company M&M is planning for, will be designed by Stile bertone. This is an Italian car design studio which had designed Xylo initially. The company will have to compete with Tata Motors as Tata Motors is already performing very well in the Indian market. It has also got plans to soon unveil the mini-SUV or smaller Xylo model for the Indian market.

Source:- M & M Plans To Enter Small Car Segment - New Cars

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New small car in India from Mahindra

The Indian compact car lovers have been gifted with brand new small cars in India for more than six months now. Thanks to the rapidly growing small car segment in India that is still attracting new auto makers to introduce their cars in India. The new entry in this segment is Mahindra & Mahindra. This indication has come from sources in the industry that are claiming the foray of home grown auto maker Mahindra & Mahindra.



According to some news reports, the company is in the process of marking new facility for new small cars; the total investment in this venture might be up to Rs 1400 crore.

Mahindra & Mahindra has already started the process of developing its yet-to-be launched small cars in India; news reports claim that the code names of the Mahindra small cars would be S101, S102 and S103. If everything goes well, Mahindra will launch its small car in India with an expected price tag of Rs 2-5 lakh. It is to be noted that competition in the small car is already fired up with the launch of Nissan Micra, Ford Figo, Volkswagen Polo, Chevrolet Beat, Tata Nano etc.

Source:- New small car in India from Mahindra - New Cars

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Renault aims high for the Indian market

Renault, a France based leading car maker, is eying on establishing itself as a major player in the Indian car market with launching a series of new vehicles in India, in coming five years. It is expected that the company will come-out with as much as 4 new car models in India across different segments. However, the Renault India has to establish its own dealership base in the Indian market as after parting ways with Mahindra & Mahindra the company hasn't left with any dealership in India. The company is aiming to establish a large dealership base of 70 dealers in the country by year 2014.

Renault Fluence, which is a luxury saloon, is among the first one to enter in India in the second quarter of next year. The Fluence model is expected to be priced in the range of Rs 12 to 13 lakh and will possibly compete with other popular cars of this range including Skoda Laura, Honda Civic and Toyota Corolla Altis. The Fluence will be followed by luxury SUV Renault Koleos, which will possibly be launched in the Indian market by the end of 2011. It is expected that the company will place this SUV in the price segment of Rs 17 to 18 lakh. Both of these models will be imported as CKD (Completely knocked Down) units in the Indian market and will be assembled at company's Oragadam plant near Chennai. Besides this, the company is also planning to launch a new car in the compact-car segment in India by year 2012. The car will be developed at a platform shared with Nissan Motors in India. With this, the company is also expected to launch its Clio model in the Indian market, which has been phased-out in the European market. However, there is no announcement from the company's side regarding the launch of this model in Indian market.
Source:- Renault aims high for the Indian market - New Cars

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Mahindra posts 63.05 jump in May 2010 sales

Mahindra & Mahindra, India's largest SUV maker has reported a 63.05 percent jump in its domestic vehicle sales in May 2010. The company managed to sell 27,036 units of its vehicles in the period of May 2010, as compared to 16,581 units sold in the same period of last year. According to company, the Total sales of M&M utility vehicles, including Scorpio, Xylo, Bolero and Pick-Ups, stood at 18,940 units against sales of 12,620 units in May, 2009, a jump of 50.08 per cent.



While the sales of Mahindra Logan model increased by 5.39 per cent to 450 units in May 2010, as against 427 units sold in the same period of last year.
Besides this, the sales of three-wheelers and Gio and Maxximo mini-trucks of the company stood at 6,641 units, as compare to 2,703 units during the same month last year, accounted a sales increase of more than 145%.

The total sales of light commercial vehicles of Mahindra Navistar Automotives Ltd stood at 1,005 units in the month as compare to 831 units sold in the same month last year, accounted for a growth of 20.94 per cent. Company's exports jumped three fold in May 2010 at 1,068 units as compare to 285 units sold during May, 2009.

Source:- Mahindra posts 63.05 jump in May 2010 sales - New Cars

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Mahindra First Choice inaugurates third outlet in Thane

Mahindra First Choice Wheels Ltd., which is a joint venture company owned by M&M, HDFC and a PE fund, has inaugurated its third authorized outlet in Thane, named as 'Car Planet'. Mr Rajeev Dubey, president (HR, After-Market & Corporate Services) who is also a member of the Group Executive Board, Mahindra & Mahindra Ltd., was present at the occasion. The new outlet, which is the largest showroom of the company in Thane, is spread across a large area of 1900 sq. ft..



While inaugurating the outlet Mr Dubey said that he was delighted to inaugurate company's newest dealership in Thane, where Mahindra First Choice has already established itself as a leading pre-owned car company. The pre-owned car market in Thane is growing at a rapid rate with sales of 1800 cars a month. Car Planet is well poised to tap the potential of this market with its extensive infrastructure and the array of services it offers customers.

The Mahindra First Choice is among the leading players of the used car segment with about 125 dealerships spread across 80 cities of the country. To reach more and more buyers of this segment the company is planning to increase the number of its dealerships to 300 in the period of coming three years. Mahindra First Choice is growing at a very good pace with selling more than 18,000 vehicles in the current year. The company is rapidly increasing the number of its dealerships in India as Just last week, it has inaugurated its first authorized dealership in Goa named as 'Delsco'.

While describing the services to which Car Planet will offer at this dealership, Mr Kumar Gounder, managing director, Car Planet, said that company is pleased to continue its partnership with Mahindra First Choice in Thane. Car Planet will display a wide variety of car brands and will function as a one-stop shop for all those wishing to either buy or sell a car. Services offered will include purchase and sale of pre-owned cars, car finance and insurance, fitment of car accessories and assistance with paperwork and documentation.

Source:- Mahindra First Choice inaugurates third outlet in Thane - New Cars

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Mahindra First Choice inaugurates new outlet in Goa

Mahindra Choice, a jointly owned venture by M&M, HDFC and a PE fund, which operates in the used car market, has inaugurated its new authorized dealership in the in Goa named as 'Delsco' at PBC Plaza, Near Nagoa Pirni Circle, Verna Salcette. Mr Ashesh Dhar, vice-president, Operations, Mahindra First Choice Wheels Ltd. inaugurated the dealership which is spread across an area of 1,900 sq. ft.



The Mahindra First Choice is among the leading players of the used car segment with about 125 dealerships spread across 80 cities of the country. To reach more and more buyers of this segment the company is planning to increase the number of its dealerships to 300 in the period of coming three years. Mahindra First Choice is growing at a very good pace with selling more than 18,000 vehicles in the current year.

While inaugurating the dealership, Mr Ashesh Dhar said that the Delsco is first-ever dealership of Mahindra First Choice in Goa. The size of used car market in Goa is approximately approx 9,600 per year and that of new car market is 13,500 per year. Goa thus has a huge growth potential and Delsco with their expertise in the region, coupled with our value proposition of trust, transparency and wide choice will ensure that Mahindra First Choice is well poised to tap the vast potential of the pre-owned car market in the region.

Source:- Mahindra First Choice inaugurates new outlet in Goa - New Cars

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Mahindra bids for S Korean SUV maker Ssangyong

Mahindra & Mahindra, country's largest SUV maker has made bids to buy Ssangyong Motor Corp, a South Korea’s bankrupt firm. Interestingly, Renault group, a France based leading car maker which has recently ended a 5 year old joint venture with Mahindra group, has also made bids for this Korean firm. The Mahindra and Renault had entered into a partnership in year 2005 when both of the companies started manufacturing Logan sedan in India. But due to the recently surfaced differences on the issues like pricing and designing the joint venture came to an end in April 2010.



The bidding value for Ssangyong Motor Corp, which has around 2% market share in the Korean market, is expected to be in the range of $300-$500 million. The company sales some of the popular SUV's in the Korean market including Rexton and Kyron which will definitely help Mahindra & Mahindra in enhancing its operations in markets like South-Korea if it gets succeed in buying this bankrupt firm.

Company's expertise lies in turning around sick companies and therein lies the primary synergy for its interest in the company. It has identified value in this company and therefore, has put in a bid for the same, said Mr Pawan Kumar Ruia, in a statement to a leading business daily.

Source:- Mahindra bids for S Korean SUV maker Ssangyong - New Cars

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Reva enters in a new era with Mahindra merger

Reva Electric, a well know electric car maker in India which has recently been acquired by the Mahindra Group, was started selling its vehicles in India since year 2001. The company was formed as a joint venture with two foreign companies- Detroit’s General Motors and Silicon Valley VC fund Draper Fisher Jurvetson (DFJ).

The company had recently entered into a tie-up with General Motors to manufacture the electric versions of GM's compact car Chevrolet Spark in India, which was a major success for the company as it was the first time that an Indian comoany would provide electric car technology to one of the largest car makers of US.



At present, the REVA is marketing its cars in 24 countries across the world automobile market, with an overall vehicle population of over 3500, arguably the largest EV fleet globally. REVA recently premiered its next generation electric car models, the NXR and NXG which received an enthusiastic response. Mahindra REVA will now have access to Mahindra's vehicle development technology and distribution network, significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets.



The decision of giving its control to the Mahindra group was a bit surprising for many market watchers as the company was doing very well at the time of this merger. On the other hand Mahindra group has strengthened its position in the Electric Vehicles domain with the acquisition of a majority stake in REVA Electric. The company will be renamed Mahindra REVA Electric Vehicle Co Ltd. Under the new agreement which was signed by both the companies, M&M will own 55.2% equity in Mahindra REVA by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crores (approx US $10 million) into the company. The buyout makes the Mahindra group a strong global player in the electric vehicle space.

Source:- Reva enters in a new era with Mahindra merger - New Cars

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M&M buys 55% in Reva for electric car venture

Mahindra & Mahindra has finally bought a majority stake in the electric car company Reva speculations doing rounds from quite some time now. This marks the beginning of a new venture of using an alternative fuel technology in their new car. M&M has been a popular and indeed the largest utility vehicle company in India and this stride would only add passenger cars to the portfolio of this auto major. The current portfolio of M&M in India includes Bijlee, a three wheeler and Maxximo that is also powered by electricity and is due to launch later in this year.



Mahindra would hold a whopping 55% stake in Mahindra Reva Electric Vehicle Company, while Reva's promoters, the Maini family would have a partnership of 31% and the co-founder of Reva Lon Bell will have a share of 11%. The rest would be held by the employees with stock options. Pawan Goenka, president Mahindra & Mahindra, ready to take over as chairman of the partnership, commented that they expect about 1.5 million electric cars to be sold globally and find it simple that at least 50,000 of that total would be Reva cars. The deal comes forward as the part of Mahindra & Mahindra's long term strategy of focusing on global expansions.

Source:- M&M buys 55% in Reva for electric car venture - New Cars

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Mahindra may buy Reva electric very soon, Reports

The speculations about Mahindra & Mahindra's intentions of buying India's only electric car-maker Reva, which are doing rounds in market since last few months, are again in the headlines with reports that Mahindra group is likely to take a step in this regard in a day or two. Mahindra's shares plummeted 2.48 per cent on Tuesday, amid media reports of this possible merger.



According to media reports, the Mahindra Group may announce about this tie-up in 2-3 days after signing the agreement with REVA electric. The possible deal could cost anywhere around Rs 450 crore, though the actual value is yet to be ascertained by both of the company.

Mahindra & Mahindra, is India's largest utility vehicle manufacturer with selling some of the most popular SUV's in India including Mahindra Bolero, Scorpio and Xylo. The company also has a significant presence in commercial vehicle market with selling some popular loading vehicles in this segment including Mahindra Maxx and Bolero.

On the other hand, REVA (Reva Electric Car Company), is a Joint venture company between California-based AEV LLC and Maini Group, which has been funded by Global Environment Fund and Draper Fisher Jurvetson. REVA group has recently entered into a tie-up with US based General Motors for manufacturing of electric version of GM's compact car Chevrolet Spark in India.

Source:- Mahindra may buy Reva electric very soon, Reports - New Cars

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