Mahindra to make vehicles in Detroit from March

DETROIT: Mahindra & Mahindra (M&M) is set to launch offhighway vehicles and SUVs in the US, becoming the first Indian manufacturer to produce vehicles in Detroit. M&M will begin production in Detroit from March to roll out an offhighway vehicle that will be sold across the US.

Simultaneously, M&M's Korean subsidiary Ssangyong has started preliminary work to identify and launch SUVs in US. "This is something that the Mahindra group is pursuing very aggressively.

The matter will soon be taken up by the board of Ssangyong. Once the Ssangyong board decides to go ahead, we will take at least three years to finalise plans," M&M MD Pawan Goenka told TOI.

The company can consider three SUVs from Ssangyong's line-up for the ambitious foray. These include Tivoli, Korando and Rexton. "We may initially begin through completely-built unit (CBU import) route, and thereafter manufacture them at Detroit." Detroit has been the centre of operations for M&M in the US when it comes to the nontractor business. It is already selling tractors there and has an assembly operation at Houston in Texas. Rick Haas, CEO of Mahindra Automotive North America (MANA), said production of the off-highway vehicle is the first critical step towards establishing credible passenger vehicle operations in the US. "This product needs to be successful. It will help us build the Mahindra brand here, and fuel our global expansion plans," Haas said.

The off-highway vehicle, an adaptation of a current Mahindra vehicle, has been in the works for the last two-and-ahalf years. The company has spent roughly $230 million for the operations in Detroit, including an engineering centre (that employs more than 250 people) and a production setup that has a paint shop and an assembly facility.

The off-highway vehicle will be sold through the Powersports Dealer Network, which is a multibrand retail channel for all-terrain vehicles, motorcycles, snowmobiles and watercrafts. M&M's product is expected to compete with ATVs from companies such as Polaris, John Deere, Yamaha and Kawasaki.

Mahindra India