Business Daily from THE HINDU group of publications
Wednesday, Aug 15, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Aug 15, 2007 ePaper |
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Corporate
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Overseas Investments Industry & Economy - Cars
Our Bureau Mumbai, Aug 14 Mahindra & Mahindra (M&M) is expanding its presence in the overseas market. The company will set up shop in Brazil and Egypt as an ongoing programme to cover the South American and African markets. In Brazil, M&M will set up a utility vehicle assembly plant in tie-up with local partner, Bramont. The plant will be commissioned by November, said Dr Pawan Goenka, President (Auto Sector), M&M. Initially, 5,000 completely knocked-down kits (CKDs) will be assembled at the facility, which will be scaled up to 10,000 a year. An investment of $10 million will be made by the local partner as part of phase I, while M&M will provide the necessary technical support. Bramont will distribute the vehicles through a chain of 30 dealers appointed in the first year of its operations. The Brazilian facility will take care of distribution and sales in the MERCOSUR region comprising countries such as Uruguay, Paraguay, Argentina and Brazil. In Egypt, the company will assemble Scorpios under the CKD operation with local partner Bavarian Motors. The local partner, true to its name, is also a maker of BMW cars and a Chinese car model. The operations are likely to commence by the end of the current fiscal. Production capacity
Initially, the production capacity will be 4,000 units, to be scaled up to 10,000-12,000 units eventually. These developments were mentioned on the sidelines of the company’s rollout of its two millionth vehicle. Speaking on the occasion, Dr Goenka said that over the last 60 years, volumes had grown at nine per cent CAGR, and 22 per cent in the last five years. Utility vehicle sales accounted for 82 per cent, LCVs nine per cent, three-wheelers six per cent and exports three per cent to the two-million vehicles sales. Over the last decade alone, the company sold one million vehicles. On achieving this milestone, the company donated two Scorpios to the UP-based Sri Ram Krishna Sewa Sadan Cancer Hospital & Research Institute and the Naandi Foundation, Udaipur.
Related Stories: Roadmap for Mahindra’s US entry with Scorpio Scorpio drives into Kenya More Stories on : Overseas Investments | Cars | Mahindra & Mahindra Ltd
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