[TusharK]

Mahindra's statement on FCA's litigation in Australian court

Last week we had reported that Fiat Chrysler Automobiles (FCA) had filed a litigation in the Federal Court of Australia to block Mahindra from launching the Thar in the Australian market.

Mahindra had made it clear in its reply to the court that it had no plans to launch the current model of the Thar in the country. The company had also agreed to provide adequate notice to FCA if they had plans to do so.

Mahindra has now released an official statement regarding the issue.

Official statement:

“We’re seeing very strong demand for the all-new Thar 2020 in India, therefore have no immediate plans for launch of the current variant of the Thar in markets outside India. As a result, it was pointless to engage in a litigation at this stage. When we decide to launch any new variant of the Thar in Australia, we will provide 90 days’ notice to FCA and take all steps to protect our rights to market and sell the product. This has no bearing on our future plans in Australia as we continue to pursue expansion of our business across a number of vehicle categories.”

[dragracer567]

Honestly, we are being a bit hard on Mahindra. There is absolutely no way that Mahindra can make a modern version of the MM50 without it ending up looking like a Jeep Wrangler. We’ve to keep in mind that this is not like some Chinese company copying other vehicles because Mahindra has been making its version of the Jeep since the 40s, only a couple of years after Willy’s, and that too continuously for almost 7 decades now. I really can’t fathom how Mahindra can make an upscale
Thar without it looking like a wrangler, perhaps someone who knows about car designing can correct me on this.

[woodstock3001]

A question to mods as i was unable to find an answer to this.

Since Jeep Wrangler in Australia cost approx 36 lac , what is someone wants to import a brand new Mahindra Thar from India (Not an Ozy, say an Indian living in Australia). Can he do it now given this Jeep vs Mahindra episode in Australia ?

and if not an individual, is there some BBT Australian version that wants to play spoilsport & wants to make money ? What are the chances of doing it & is it legal ?

[wildsdi5530]

Originally Posted by woodstock3001

Jeep Wrangler in Australia cost approx 36 lac , what is someone wants to import a brand new Mahindra Thar from India

I don't think private import paying the requisite duties will be disallowed. Should check with an Australian Lawyer. However Importing an Indian Thar tope end will probably cost more than 36 Lakhs considering the on-road is nearly 18 L. Will Australia not put customs duty of 100% at least, I know India customs duty is 142%

[Shreyas]

Originally Posted by wildsdi5530

I don't think private import paying the requisite duties will be disallowed. Should check with an Australian Lawyer. However Importing an Indian Thar tope end will probably cost more than 36 Lakhs considering the on-road is nearly 18 L. Will Australia not put customs duty of 100% at least, I know India customs duty is 142%

Actually no. As per my research, a normal car import duty is 5% in Australia.

Thar can actually be a viable option for importing to Australia, even considering the freight and it's insurance, provided no problems occur legally for the owner. Please correct me if I am wrong.

[Hemi6.2]

Just adding inputs from my side regarding the import of Thar to Australia:

Importing any car to Australia from anywhere isn't a hassle and Australia doesn't manufacture any car locally now. Every new car is imported by their manufacturers for selling in the Australian market.
I have also seen people importing JDM cars from Japan and RHD converted pickup trucks from USA to Australia. So in a nutshell, only hurdle would be getting the Thar registered and proven road worthy there.

[suneel]

To everyone who so is so strongly defending Mahindra, perhaps this will jog your memory of their ethical design philosophy:

The Mahindra Stinger Concept from 2018 vs the Range Rover Evoque

https://youtu.be/uT5ksRuRdK8

[turbo]

Originally Posted by suneel

The Mahindra Stinger Concept from 2018 vs the Range Rover Evoque

https://Youtu.be/uT5ksRuRdK8

Now thats taking things too far, man.

Thats a TUV300 without the roof.

[adwaith]

Originally Posted by turbo

And that is the end of the story.
The Aussie court cant tell Indian authorities what to do, and what not to.

If FCA decide to sue in India, foreign judgements may have persuasive precedence. Considering how the IP works in India, there is a good chance it would be ruled in lines with the foreign judgement.

[extreme_torque]

Originally Posted by dragracer567

Honestly, we are being a bit hard on Mahindra. There is absolutely no way that Mahindra can make a modern version of the MM50 without it ending up looking like a Jeep Wrangler.

There are as many ways as there are people on this planet. You just need to make some effort and find the right one.

Originally Posted by dragracer567

We’ve to keep in mind that this is not like some Chinese company copying other vehicles because Mahindra has been making its version of the Jeep since the 40s, only a couple of years after Willy’s, and that too continuously for almost 7 decades now. I really can’t fathom how Mahindra can make an upscale

This is a poor excuse. Hypocratic even since its one of our “own”. Why call on chinese makers then? Its not like their whole range is copy cat cars.

Originally Posted by dragracer567

Thar without it looking like a wrangler, perhaps someone who knows about car designing can correct me on this.

Did you not say “there is no way mahindra….”?

[LTAutoMad]

Originally Posted by Hemi6.2

Just adding inputs from my side regarding the import of Thar to Australia:

Importing any car to Australia from anywhere isn't a hassle and Australia doesn't manufacture any car locally now. Every new car is imported by their manufacturers for selling in the Australian market.
I have also seen people importing JDM cars from Japan and RHD converted pickup trucks from USA to Australia. So in a nutshell, only hurdle would be getting the Thar registered and proven road worthy there.

Unfortunately for Australian petrolheads, importing a car is a huge hassle and many times impossible. While the duty is only 5% and GST another 10%, it is a bureaucratic nightmare.

Australians pay what the locals call the "Australia Tax" - a huge premium just because we live in a very tightly regulated island with strict government controls. Everything from iPhones to over the web software to German & Italian cars cost much much more than the USA, UK etc. - just because the manufacturers can fleece us! Not joking.

Even after factoring in AU$ rate, GST, Luxury tax etc; luxury & sports cars are much more expensive in Australia than say, USA.

A few years back when the last car manufacturer left Australia, there was a push by some groups to allow import of near-new used cars by the public from UK or Japan. The car companies lobbied the politicians very hard to scuttle it - excuses being warranty, safety etc!

There is Special Enthusiast Vehicle Scheme by which some businesses are importing JDM cars, US megapickups etc. An individual can import classic cars, muscle cars, OLD exotics etc this way (best done via approved SEVS workshops/agents) as the rules are relaxed for cars older than 25 years. But, for an individual to import a NEW car from a foreign market is almost impossible / makes no sense financially. The cost of compliance, certification etc for a one-off will make the Thar cost the same as a Wrangler!

[ph03n!x]

Originally Posted by LTAutoMad

...
...But, for an individual to import a NEW car from a foreign market is almost impossible / makes no sense financially. The cost of compliance, certification etc for a one-off will make the Thar cost the same as a Wrangler!

While I agree on the hassles, I'm not sure about the cost - the Thar costs under 10 lakh INR excluding GST and Cess - under 18k AUD. If the jeep is going to exported out, will these be applicable (or can't it be claimed back)? I'm totally ignorant on GST laws, but seemed logical. Will compliance, certification etc. cost as much as the vehicle?

On being sued in India - I'd said earlier that M&M's legal team would have assessed the risks before they launched the new Thar. I'm also sure that FCA has a good legal team that would have sued by now in India if they find solid grounds. Or are at least prepping their case - let's wait and watch

[Hemi6.2]

Originally Posted by LTAutoMad

Unfortunately for Australian petrolheads, importing a car is a huge hassle and many times impossible. While the duty is only 5% and GST another 10%, it is a bureaucratic nightmare.

Sad to know it is not as simple as they say and the policies are just as much deterrent for an individual as in India.
Anyways, when I thought more about this idea, I would say that one can get far better off-roaders than Thar in the Australian pre-owned market, something from Toyota/Nissan/Mitsubishi.

[ajmat]

Originally Posted by TusharK

The ongoing tussle between Fiat Chrysler Automobiles (FCA) and Mahindra over the Thar's design has now reached down under.

FCA have been bitter over Mahindra since 1995 when Mahindra went behind their backs and signed up with Ford, despite the fact that Chrysler had nothing to offer for the Indian market. They've stuck it in to Mahindra ever since

[turbo]

Originally Posted by adwaith

If FCA decide to sue in India, foreign judgements may have persuasive precedence. Considering how the IP works in India, there is a good chance it would be ruled in lines with the foreign judgement.

There's a prior use clause in the intellectual property law, get a lawyer friend to explain it to you.