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Old 30th March 2015, 13:36   #1
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Default Mahindra discontinues UV sales in Brazil

After failing to meet success with its range of utility vehicles in the Brazilian market, Indian utility vehicle manufacturer - Mahindra has finally decided to shut shop in Brazil.

In pursuit of its global ambitions, Mahindra entered the Brazilian market in 2008, partnering with Bramont Montadora Industrial e Comercial de Veiculos Ltda. The Scorpio SUV and its Pik-Up range (single and double cab) were the first to be made available for sale.

The company faced several logistical challenges which led to high costs as well as longer production times. The body assembly was undertaken by Usiparts, while chassis, suspension and power-train assembly was done by Bramont at its plant in Manuas. Both these facilities were at a considerable distance from each other. In 2014, Pawan Goenka, president of the Automotive and Farm Equipment Sector of the Group, stated that the company had no definite plans of setting up a manufacturing facility in Brazil.

Despite having an annual vehicle production capacity of 5,000 units, Mahindra managed to find only 4,000 takers over its term in Brazil. That is actually less than Mahindra's monthly Scorpio sales in India! Things only got worse with the slowdown of the Brazilian market and the dollar valuation.

Mahindra's Brazilian partner - Bramont, says that production of Mahindra tractors will continue unaffected.

Mahindra discontinues UV sales in Brazil-dsc01176.jpg

Source: just auto

Last edited by S2!!! : 30th March 2015 at 13:39.
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