Re: Wow! Is Mahindra silently making its way into the USA? EDIT: Got EPA go-ahead Pg. <<The same "US market" has tolerated boats like the Ford Taurus/Mercury Sable and the very loosely glued together Chevy Cavalier (hatchback).>>
ZenX, there have been quite a few massive failures in the US markets, completely agreed. The difference is that they came from brands that have had the capability to either re-haul the design, or absorb the losses of scuttling the failed vehicle program. In case of an unknown and small company (like Mahindra) that is trying to enter a foreign market, there is little possibility of a second chance. For example, a Mahindra XUV that gets introduced in the American market will not just have to have an excellent "defects per 100" rating right from its first production run, but will have to sustain it for an entire life cycle (~4 years before the model gets re-engineered).
Another thing to note is that introducing just one or two products may not help a manufacturer by much. Considering (and assuming) that Mahindra will play in the peoples segment (read as economy vehicles), it will have to introduce more than just one vehicle (model) to help get itself a presence. In addition, each model has to come with some sort or engine and trim choices.
Another possibility is that the company may (almost surely) have to begin its American episode as a 'leased' vehicle manufacturer. Nobody in their right senses is going to commit to ownership of an unknown vehicle. I'd rather have a 3 year 36,000 mile maintenance covered lease if I am not sure what I'm buying. Chances are Mahindra may become a fleet vehicle, or a student vehicle (a la Hyundai, Kia in their initial years etc), or just a novelty third vehicle in the garage.
The biggest challenge, as I maintain, will be the creation of the brand. The USA is a place with 1 car behind every 1.3 people, and if there is any segment to be exploited rest assured it has already been. For Mahindra to create a niche of its own, it has to come up with something really ingenious, really sustainable against the Big-3. (If Mahindra’s 2.2 Diesel ute hits bulls eye, how long do you think the Big3 from Detroit are going to take to capture that market segment with products of their own)? For Mahindra to produce fish that will swim in the existing pool, it has to have the financial-engineering-manufacturing-marketing power to compete with the 87 other brands that are operational in the USA. Chances are Mahindra will collaborate with an existing player, in which case it may never make it as a brand by itself. Either ways, it is a huge challenge.
Having said all that, I for one would like to see Mahindra score a 100,000 units in the US.
(btw, Ford Taurus has consistently enjoyed the status of the best selling American sedan for many years, third only to Toyota Camry and Honda Accord in its segment. You have to see the fully re-engineered Ford Taurus....as massive and awesome as it is, it has silently moved itself out and above the Camry-Accord segment, and sells as a large semi-luxury car). |