Mahindra may opt to build pickups using a Navistar US factory later

mnAfter a few delays and a great deal of speculations, Mahindra sets it straight in an interview by Dow Jones Newswires as reported by The Wall Street Journal.

While the first few batches of pickups will be assembled in India, Mahindra is planning on getting Navistar to build their TR pickups on one of their US factories. This move will allow Mahindra to avoid the chicken tax, which imposes a 25% tariff on light duty trucks produced outside the US.

“Once we decide to assemble in the U.S., we would look at Navistar’s facilities to see if there’s something available which is right for us and if that works out,” said Pawan Goenka, president of Mahindra’s automotive division. “We will certainly give priority to using Navistar’s facilities.”

Mahindra and Navistar are already working together in two joint ventures in India: one is for trucks and buses and the other is for the diesel engines for the said vehicles. According to Mr. Goenka, contract manufacturing of their pickups will be more cost-effective as compared to buying a factory in the US, since “the investment won’t be more than a few million dollars.”

The Scorpio-based pickups to be sold in the US this year will be imported from India and delivered to US shores starting the 2nd quarter of 2010.

6 Responses to “Mahindra may opt to build pickups using a Navistar US factory later”

  1. manny says:

    2007- 2008- 2009- 2010 Febuary , now 2nd quarter!!!! when when when ???? april, may,june?????????? what!!!! wait again and see if the units from India sell??? I want mine NOW!!!!!!!Globle is a bust< I find out more from the net, what is it with this outfit???I am wondering if parts will be available? brake something and what, wait for the plant to gear up 2011-2012 maybe 2nd quarter 2013!!!! better yet ship it from India!!!!!!! I wonder if the powers to be have any idea the negetive effect this is doing to us ,that wait for this great product and then my kids lemonaid stand has a better chance of opening this summer(2010)!

  2. john moffett says:

    This is a joke. You have lost all credibility with these constant delays. You had a possible customer but now I and many others will buy another brand regardless how this turns out. See you in 2012, 2013, 2014… Actually just keep them in India. Thank you for your inability to getrdone.

  3. Mahindra and Mahindra will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA. This will promote the Mahindra and the US market will be open for the pickup trucks by Mahindra in the Automobile Industry.

  4. bob says:

    I’ve been waiting for years for this truck to come out. So far it seems like this isn’t really happening. For one the news concerning its release has been minimal. Secondly the Mahindra site has not really changed either. Lastly the release date keeps getting put off.

    Additionally, I have to say that the prices I’ve seen for this truck, which is in the lower 20’s isn’t acceptable. For that price I could buy an F-150, a Tacoma, Nissan Frontier, or just about any other brand of truck. The only thing Mahindra has going for them is that they have a small, no-nonsense truck with a diesel engine. I’d be willing to take a chance on an unproven truck for say- $15k. But at 20k I might as well buy another Tacoma since my current Tacoma has 230,000 miles with no problems so far.

    What will sell this truck is the fact that its almost retro. It looks like something from the 70’s which I actually really dig. It looks and functions like a truck. People will appreciate this aspect in a world of overly luxurious, car-like trucks.

    But you guys have got to get this thing to market and soon. My suggestion is to just go ahead and bring it here. Try to get the prices down to a lower level. Say in the 12-15k range. I think people would be willing to have something that’s not exactly perfect and more functional at that price. I could care less about the interior and more so about the mechanical quality. I think I speak for most other buyers. But again… 20k is a bit steep for an unfamiliar truck from India being sold in the US where the pickup truck reins supreme and US and Japanese manufactures have brought it to an almost art-like perfection.

    Bring out the truck sooner than later.

  5. rick says:

    I couldn’t agree w/bob more. My poor old 98 Isuzu just turned 131k have been waiting for Mahindra for ever. Come on guys get it together.

  6. Pankaj says:

    Sadly, this seems to be a common way of doing business for India firms. Many products are promised at a good price on a great schedule. But it takes more time and more costs when the product is actually available for sale.

    Mahindra should do the needful and either bring the truck or announce that they are not going to bring the truck.

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