Financial Daily from THE HINDU group of publications
Saturday, Feb 18, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Outlook
Marketing - Strategy


M&M plans to expand European operations

Our Bureau

New Delhi , Feb 17

MAHINDRA & Mahindra (M&M) is charting out an aggressive expansion strategy for the European markets.

Through Mahindra Europe Srl (MESRL), its European arm, it is planning to launch new vehicles in the region as well as expand its distribution network.

According to Mr Pravin N. Shah, Executive Vice-President (Overseas Operations), Automotive Sector, the company would be launching pick-up vehicles on the Scorpio platform - including a lifestyle variant - in Europe soon.

It is also set to launch the Mahindra Classic in Europe under the name, Mahindra Thar.

"We do foresee sales for the Mahindra Classic as there is demand in Europe for vehicles with a classic, retro look. This would also aid in our brand building efforts," said Mr Angelo Molfetta, Managing Director of MESRL.

M&M already sells the Mahindra Scorpio in Europe as the Mahindra Goa. "We expect to get sales volume of 4,000-5,000 units a year in Europe in about 2-3 years," Mr Shah said.

MESRL will also expand its distribution network to more countries in Europe over the next year.

It would be launching vehicles in Spain next month through 16 dealerships.

"Further, we would like to expand to the Balkan region, Belgium, Denmark, Germany, and Finland," said Mr Molfetta.

M&M vehicles are already being sold in France and Italy.

Meanwhile, in order to fund its expansion plans MESRL has entered into a tie-up with Exim Bank to avail of credit facilities.

The initial credit is worth $3.5 million, which can subsequently increase according to business requirements.

MESRL is an 80:20 joint venture between M&M and its local partners based in Italy. The company imports, adapts, and distributes the M&M range of utility vehicles in Europe.

More Stories on : Outlook | Strategy | Cars | Mahindra & Mahindra Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Underground coal/lignite gasification tech — GAIL gets board nod to get licence from Canadian firm


Madhucon GDR issue
An unwitting tax liability?
Dr Reddy's acquisition includes research centre
Niko Resources mum on IOC offer
Spentex Industries set to acquire Indo Rama Textiles
Ceat merges three subsidiaries with self
Saint-Gobain to set up unit for solar control products — Opens second float glass plant
Banks told to show details of Cheran Enterprises account
Employees of 3 jute mills in AP threaten stir from Sunday
Tata Sky signs pact with Thomson for set-top box technology
'Corporate social responsibility starts with one's company'
Numaligarh Refinery mulls Rs 800-cr IPO — Final decision in four months
India a priority zone, says Saint Gobain CEO
GAIL confident of meeting consumer demand in summer
Vizag Steel to focus on energy conservation
M&M plans to expand European operations
Lotte India MD resigns
Anil Singhvi appointed director on ACC board
New members on boards of Punjab Tractors, Swaraj Mazda



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line