Mahindra Misses Latest U.S. Launch Target for Pickups

NEW YORK – Indian truck maker Mahindra & Mahindra Ltd. has run all of the required Environmental Protection Agency and U.S. National Highway Traffic Safety Admin. tests necessary for certification to begin selling vehicles in the U.S, but it has not submitted the paperwork.

“The government has nothing to review at this time,” says a Global Vehicles U.S.A. Inc. insider.

Mahindra now says first trucks to be built in India, not U.S.

Global Vehicles, which has its headquarters in Alphareta, GA, has exclusive rights to distribute Mahindra's TR 20 and TR 40 diesel-powered small pickups.

The distributor previously has announced a number of launch plans going back more than a year. But its latest date for this spring seems unattainable, as Mahindra still lacks federal certification.

Global Vehicles CEO John Perez has said Mahindra executives have not informed him of their plans to ship the pickups here, according to the insider, noting Perez has indicated Mahindra is determined not to bring the trucks here until they are totally right.

Global Vehicles has signed up 340 dealers, some of whom have paid a franchise fee of $195,000 for the right to sell the Indian trucks in the U.S. Some paid a lower franchise fee when the distributor started recruiting dealers a little over three years ago.

Mahindra initially plans to distribute the 2-door TR 20 and 4-door TR 40 in the U.S. Both pickups will be powered by a 2.2L diesel engine that generates 140 hp and 236 lb.-ft. (320 Nm) of torque.

A 6-speed automatic transmission is standard for both models. The trucks also will use a urea solution to treat oxides of nitrogen emissions in order to be certified in all states.

Mahindra originally said the trucks would be assembled in the U.S., but has not selected a site for a plant yet. Instead, the truck maker says its first products will be built in India and shipped here, even though that means a 25% truck import tariff will be added.

Global Vehicles plans to begin distribution in the southeast region of the U.S. when it receives the trucks and then widen distribution across the entire country.

The distributor previously announced it would also bring Mahindra's 4-wheel-drive utility vehicles here as an additional part of dealer portfolios.