[directinjection]

Originally Posted by Ashley2

Currently they use Navistar sourced Maxxforce engines. But understand they are likely to offer our "National truck engine" - Cummins. But its good or not we cant comment on it, as MN is hugely promoting Maxxforce engines which will be of no use when they start offering Cummins, as there will be no product differentiation.

Is the Maxxforce localised or not? If it is localised, M&M and its vendors must have made substantial investment in setting up the manufacturing facilities and it will not be easy to phase out Maxxforce. But then Maxxforce admeasures 7.2 litres (compared to 5.9 L national truck engine) and so perhaps the two could be positioned differently.

[teamveevee]

Originally Posted by Ashley2

Currently they use Navistar sourced Maxxforce engines. But understand they are likely to offer our "National truck engine" - Cummins.
But its good or not we cant comment on it, as MN is hugely promoting Maxxforce engines which will be of no use when they start offering Cummins, as there will be no product differentiation.

I am not sure Navistar will keep investing in R&D to improve Maxxforce after they move to Cummins, then MN will be stuck with old technology and competitors will be able to take advantage of the situation. I think MN is in tight spot anyway! If MN decide to go with Cummins what about the support to existing customers? I guess educated Operators should stay away from MN until this is sorted out.

[Autokrat]

Originally Posted by directinjection

But then Maxxforce admeasures 7.2 litres (compared to 5.9 L national truck engine) and so perhaps the two could be positioned differently.

Currently the power rating offered on the 7.2 by M&M is similar to a 5.9L Cummins !

[volkman10]

M&M and Navistar to split ?

Mahindra and Mahindra is in talks to buy out US partner Navistar’s stake in their commercial vehicle joint venture Mahindra Navistar Automotives Ltd as the American firm is not keen on the Indian venture that is losing money.
Mahindras may tie-up with an unnamed global commercial vehicle firm post Navistar’s exit, it said.


http://www.wheelsunplugged.com/news/...r-truck-jv/697

[volkman10]

Mahindra & Mahindra has bought out 49% stake from its US joint venture partner Navistar Group's stake in for the group's struggling commercial vehicle joint venture Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL) for Rs 175 crore or $33 billion.

US truck maker, Navistar has been facing regulatory challenges and takeover threat from clutch of private equity investors and global majors like Volkswagen and Fiat in the domestic market and therefore it wants all its capital invested in domestic market.

Buying out joint venture partners stake is not new to Mahindra & Mahindra. In the past it had entered into joint venture for passenger cars with US car maker Ford and even with French car maker Renault, but since both the joint ventures did not take off as planned, M&M bought out the joint venture partners stake.

Source: ET

[teamveevee]

Originally Posted by volkman10

Mahindra & Mahindra has bought out 49% stake from its US joint venture partner Navistar Group's stake in for the group's struggling commercial vehicle joint venture Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL) for Rs 175 crore or $33 billion.

No surprises here...we were expecting this. We should appreciate the courage of the people who were willing to invest in these trucks knowing that this could happen any time(pun intented). ...http://www.team-bhp.com/forum/commer...ml#post2809952

Looks like things are not so good at Navistar, will the divorce (Mahindra & Navistar) happens much earlier than expected?.

[directinjection]

After the split, will Mahindra retain the license to make Navistar engines in India?

[Ashley2]

Since its entry in the market, close to two and a half years back, MNAL has managed to sell just over 6,000 units with a miniscule share in the highly-competitive commercial vehicle space. After having invested Rs 1,066 crore so far (M&M contribution 520 crore and Navistar contribution 546 crore), the truck JV had accumulated losses of Rs 692 crore

We have learnt that it is difficult to sell a truck versus a car. Here the customer needs to be convinced and one has to get into micro marketing. And in a slowing market, it is difficult to convert customers from the leaders, who are currently offering big discounts

Post the buyout from Navistar, the entity's name will be changed and Mahindra will start selling the trucks in its own name.

So successfully, an unsuccessful JV has come to an end. Its the second of its kind in less than a year : Man - Force and now Mahindra - Navistar. This comes out with many learnings for the biggies.
As I was pointing earlier, Indian CV space is another unique place where brand does not sell and only the products will sell. And for those people, who buys them are aware of the better brands.
This was reiterated several times. The first bang was to Mercedes Benz in their coach segment. They were quite (over) confident with the Tristar brand and came with the "Travel with Star" theme. There was initial momentum and later when customers understood, that there is nothing special for the price, the market filpped completely. No major orders recenly (SRM excluded). And its highly difficult for you to enter again, as you are going to meet the same customers unlike passenger car segment. Days are short for Mercedes to come out of the JV with Sutlej.
Now Volvo has taken full advantage of this empty space and multiplying numbers day by day.

Same way in MNAL. They criticised the existing duopolies. Unlike promoting product they were interested in degrading the competition and wanted to position Mahindra Navistar as a better brand.


The backbone of Commercial Vehicles in India are the dealers and service centres. Until otherwise your dealer is financially good, you will not be able to sell in good numbers. Due to poor sales, many dealers opted out of MNAL in early days itself. Also without service centres you will not be able penetrate into micro markets. So with lot of learnings now Mahindra should start its journey single handed. Wish to see a better tomorrow for Mahindra Trucks.


http://articles.economictimes.indiat...ka-navistar-jv

[julupani]

Mahindra Trucks and Buses Limited, as the company was renamed when M&M acquired the stake of Navistar International, is now to be merged with its parent Mahindra & Mahindra itself. The move seems to be to make it easier for the company to secure funds for future development, and other financial reasons. MTBL had an accumulated loss of 920cr at the end of March 2013.

But what is the worst part of this is that Mahindra have gone ahead and renamed their entire truck range as well now.

So now we have the following products in the market:

1. Mahindra Truxo 25 and Truxo 31
2. Mahindra Torro 25 and Torro 31 (tippers)
3. Mahindra Traco 35 and Traco 40 (tractors)

Along with that the earlier Maxx-Force Navistar engines are now being called m-Force engines.

www.business-standard.com/article/companies/m-m-to-merge-truck-bus-businesses-into-self-113081400910_1.html