Indian truck line is the new kid in town

The Virginian-Pilot ^ | July 17, 2009 | Larry Printz

[csvset]

Unless you drive one of its tractors, Mahindra & Mahindra Ltd. is an unfamiliar name. That should change as the company enters the U.S. truck market by year’s end. Two Hampton Roads automobile dealers have bought territories: Beach Ford Lincoln Mercury for Suffolk and Cavalier Auto Group for Chesapeake, Norfolk, Portsmouth and Virginia Beach.

"We really wanted it if we could get the entire market," said Steve Klimkiewicz, vice president of Cavalier Auto Group, which will open showrooms on the site of its wholesale used car store on Military Highway in Chesapeake and in Saturn of Virginia Beach's used car showroom on Laskin Road.

Beach Ford Lincoln Mercury will set up a showroom in Suffolk in part of the 80,000-square-foot building that houses Barton Ford Lincoln Mercury's service and body shop.

Both Klimkiewicz and Tom Barton III, president of Beach Ford Lincoln Mercury, said the initial franchise fee of $195,000 made taking on Mahindra compelling.

"It's a bit of a gamble, but I think it'll be worth it," Barton said.

Klimkiewicz agreed.

"The risk is relatively low, and it's a manufacturer that's a relative success," he said.

Initially, Mahindra will offer a pickup truck similar in size to a Dodge Dakota. Rear- and all-wheel-drive models with two or four doors will be offered. Standard features will include a six-speed automatic transmission, power windows and locks, keyless entry, air conditioning, four-wheel-disc antilock brakes and electronic stability control.

Come 2011, the company plans to offer a revised version of its Scorpio SUV.

Considering sagging truck sales, why would anyone want a truck franchise? Easy. Mahindra's trucks are powered by diesel engines.

It's part of the market larger automakers have steered away from. Nine diesel models from Chrysler, Ford, General Motors, Honda, Nissan and Toyota that were planned for the next two model years have been shelved, leaving a gap in the market.

Mahindra says its engine uses common-rail diesel technology found in Mercedes-Benz and BMW vehicles. The system's fuel injection differs from traditional diesels, giving the vehicle gasoline-engine performance, traditional diesel fuel economy and lower emissions.

But diesel engines cost more to build than their gasoline counterparts. German luxury automakers use their brands' higher price to absorb the cost. In Mahindra's case, that cost can be absorbed using cheaper labor in India.

The EPA hasn't released fuel economy numbers, but Klimkiewicz said mileage is expected to be in the low 30s.

"With everything we saw with the spike in gas prices, I think we'll see a demand for it," Klimkiewicz said.

Barton said the truck will fill a hole in the market that should've been filled by Ford.

"For a long time, we've been hoping Ford would build small diesel Ranger pickup, but there's been little if any change," he said.

While prices haven't officially been announced, Barton said the Mahindra truck is expected to be priced around $22,000.

"Typically, if you're talking diesel, you're talking a premium, but it will be priced comparably with other small to midsize pickups on the market," he said.

But he likes the price for another reason.

"I think part of the problem with Ranger is that if you load up a Ranger, you're competing with low-end F-150s," Barton said. "This is an alternative."

Aaron Bragman, research analyst at IHS Global Insight, said the automaker will find it challenging to lure buyers.

"If they're trying to build off the customer base they already have in tractors, they may find some takers," Bragman said. "But it's hard to sell a diesel truck in a market that largely is walking away from SUVs and diesels."

Barton disagreed.

"From everything we can tell, it will be a great alternative for someone who doesn't need a full-size pickup," he said.

[csvset]

Mahindra will offer a pickup truck similar in size to a Dodge Dakota. Standard features will include a power windows and locks, keyless entry, air conditioning and electronic stability control.

About the company
India-based Mahindra dates back to October 1945, when the Mahindra brothers won a contract to assemble Willys Jeeps in India. The company, known as Mahindra & Mohammed, changed its name to Mahindra & Mahindra two years later.

Focus on tractors
The Mumbai-based company’s activities include financial services, infrastructure development and information technology, but its main focus remains tractors. Mahindra USA has been manufacturing two- and four-wheel-drive tractors, loaders and mowers for more than a decade, with its first U.S. plant opening in Texas in 1994.

The business of cars
Mahindra entered the car market in 1996, when it signed an agreement with Ford to manufacture the Ford Fiesta in India. In 2007, the company signed an agreement with Renault to build the Dacia Logan, a popular European low-budget sedan.

[Kolokotronis]

“The company, known as Mahindra & Mohammed, changed its name to Mahindra & Mahindra two years later.”

Probably a good business move....

[AlaskaErik]

I've been waiting years for GM to come out with a half ton diesel. With this truck I can get rid of my half ton gas hog and my 36 mpg econobox that has no power anything and no A/C.

[csvset]

Yeah, the whole Mohammed imagery thing could have been problematic.

[MyTwoCopperCoins]

I read somewhere that the “Mohammed” part left for Pakistan after its creation.

[flaglady47]

“Yeah, the whole Mohammed imagery thing could have been problematic.”

Yes, you buy the truck, and 20 minutes after you drive it off the lot it blows up.

[myknowledge]

One other criteria is safety standards. Can it be met in the United States?

[WellyP]

We have had these trucks in Chile for the last few years. I have been very tempted to buy one. Everything I hear is that they are tough trucks, if not very stylish.

[MyTwoCopperCoins]

Mahindra & Mahindra Limited is part of the Mahindra Group, an automotive, farm equipment, financial services, trade and logistics, automotive components, after-market, IT and infrastructure conglomerate.

The company was set up in 1945 as Mahindra & Mohammed. Later, after the partition of India, Ghulam Muhammad returned to Pakistan and became that nation’s first finance minister. Hence, the name was changed from Mahindra & Mohammed to Mahindra & Mahindra in 1948.

[grey_whiskers]

Let me guess, the ad copy will read something like
"...the bed comfortably fits 30" /sarc>

Cheers!

[cyclotic]

I wondered what the Mahindra was. A local (recently discontinued) Dodge Dealer now has a big Mahindra sign out front.

[Bringbackthedraft]

Everything I hear is that they are tough trucks, if not very stylish. ............................................ If the vehicle is made for the 3rd world, they gotta be. Any truck made for the 3rd world has to hold up on their roads. (what roads?!!!)

[bert]

It is first and foremost a truck, a tool to work with.

American trucks have become so luxury laden, the concept of working has been lost. A rugger worker will do well with businesses that need a working truck.

The diesel means long life and overall ownership cost per mile economy. The Indians are fortunate that Mercedes has chosen not to compete with their trucks in America

[MyTwoCopperCoins]

They make tractors for hobby farmers.

http://www.mahindrausa.com/

[Mr. Quarterpanel]

“Yeah, the whole Mohammed imagery thing could have been problematic.”

Yes, you buy the truck, and 20 minutes after you drive it off the lot it blows up.

LOL!!!!

The tip off is the command wire trailing behind the vehicle.

[wolfcreek]

Yep! They pretty popular around here. See their ads on the boobtube all the time.

*Mahindra* sounds cooler when a Texan says it.

[RoadKingSE]

Word has it that this is a Mahindra too. It's a tricked out version of their Scorpio model.

[I Buried My Guns]

Yeah, me too.

you have no AC? Wow, that's tough, man. I lack AC too.

Except you're an Alaskan, and I'm a Texan.

Pity me!

[cavador]

That's not a truck!This is a truck!

And here's a bigger one!