Mahindra & Mahindra US plans far from completion

Mahindra & Mahindra India is extensively planning to expand globally and is looking forward to capture the most lucrative auto market the US car industry from sometime now. But it seems a jinx has been attached for the Indian auto giant to capture the American due to various reasons. The Indian utility maker is facing many lawsuits because of the delay in the launch of its vehicles. And now the newly acquired Mahindra Reva is also facing legal issues in America.

As per a report in a well known tabloid, the Indian car brand M&M had aggressive plans to introduce wide range of pick-up trucks and SUVs in the US auto market with the new cars based on the Mahindra Scorpio platform in North America three years ago. The launch of the cars has been delayed thrice and as a result the auto giant's partner Global Vehicles for distribution and marketing has send a legal notice for the delay, to its Indian counterpart.

As per the reports, the American auto market was quite critical; however Mahindra was counting on the fuel efficient diesel powertain in its cars, as against other auto mobile manufacturers who sell cars with petro powertrains in the American auto market. The US auto market other than holding the prestige of the biggest market is also becoming conscious on fuel economy. When enquired about the same, Pawan Goenka, the President (automotive and farm equipment) in M&M declined to comment.

The report states that Global Vehicles has spread its sales network of 347 outlets in more than 49 states in the American auto market partner with various auto manufacturer dealers. GV and its dealers jointly spent nearly $100 million for the launch.

However, M&M was in contract with GV till last year in August, after three days it got certification from US Environmental Protection Agency which gave it a confirmation to sell the pick up trucks. The Indian auto brand also filed a legal notice against GV. Mahindra India has spend Rs 200 crore on revamping the SUVs as per the US standards. It also wishes to capture the US auto market with with Mahindra Xylo. It is also reported that Mahindra Reva has been also dragged in court from Bannon Automotive, New York based legal partner of the electric car because of breaching the contract of sharing the technology.

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