Its not a good time to be selling pick-ups and SUV's even if it is the US market we are talking of.However Mahindra are all set to enter the US markets by early next year[2009] with their scorpio pick-up[not sure about its official name yet] and the SUV.
Yes mahindra says its different in that it would be cheaper and more economical[diesel and even a diesel hybrid] than its competitors but looks like even Mahindra dealers in the US don't have complete faith that an Suv or a pick-up would do well now,given the high oil prices.
Most Mahindra dealers in the US are arranging to sell the mahindra vehicles alongside other vehicles[from other manufacturers] rather than build a new facility.Perhaps isuzu's exit also has influenced them to some extent.Ofcourse for this arrangement the dealers would have to shell out between $125,000 to $150,000 to Global vehicles USA[who are the official importers].
[source:motortrend.com]
Tuesday, July 01, 2008
Mahindra dealers take the less riskier route
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Your article shows that you don't understand the dynamics of a startup car company in the USA ... I've been involved with over 8 of them.
Most car people regard Land Rover's USA launch in 1986 as their aspirational benchmark ... especially given the limited funds that Land Rover had to get the venture off the ground ... and the fact that no USA entrepreneur was willing to import the vehicle!
How many exclusive dealer facilities were constructed when Land Rover entered the USA market ... ZERO!
Later, when the dealers were making money and the threat of competition in the luxury 4X4 loomed (especially from Mercedes & BMW ... which were often dualed with Land Rover), Land Rover incented their dealers to construct the Land Rover centers that you see in the marketplace today. These centers were critical in maintaining the Land Rover brand identity!
What Global Vehicles & Mahindra are doing has to be regarded as remarkable. They are overcoming the USA's "barriers to entry" & are entering the mature USA marketplace with a world-class vehicle that appears to be highly differentiated from the entrenched competition.
The fact that dealers see the value of this differentiation & ANY are investing in the product shows that they see the value of this product differentiation too!
Drop your "superior tone" ... and give these entrepreneurs credit for addressing basic needs in the USA marketplace like affordability and earth friendliness (over 30 mpg)!
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