Mahindra Schedules 2nd Plant to Supply U.S. in 2009

Mahindra & Mahindra Ltd.'s Second plant will come on line next year to supply the U.S. market, says Xavier Beguiristain, marketing vice president for Global Vehicles U.S.A. Inc., the Indian truck maker's North American distributor.

Production at Mahindra's existing plant at Nasik assembled enough units to support the truck maker's domestic sales of about 200,000 units last year. In addition, Mahindra exported to 20 other countries, including Brazil and South Africa.

When Mahindra begins exporting to the U.S. in late 2009, Beguiristain says the vehicles will come from the new plant, which is being built south of Mumbai. It is a “high likelihood” they will arrive as knocked-down kits, he adds.

That would enable the truck maker to get around a 25% tax imposed on pickup-truck imports. Beguiristain would not confirm Mahindra plans to establish an assembly site in Ohio, claiming the truck maker is in discussions with companies to accommodate U.S. production.

Mahindra has budgeted an initial $50 million to launch sales in the U.S.

Beguiristain says 315 dealers have signed on to sell diesel-powered trucks, Mahindra's first U.S. offerings.

“We're aiming at 400 dealers eventually,” he says in an interview.

The U.S.-market lineup will consist of 2- and 4-door pickups, powered by a 2.2L common-rail diesel engine.

Using technology similar to the Bluetec system that enables Mercedes-Benz to meet emissions standards in all 50 states, the Mahindra trucks will be equipped with urea reservoirs to eliminate nitrogen oxides from their exhaust.

Beguiristain says Mahindra's trucks also will comply with all emissions standards in every state.

India's Mahindra Could Be Latest Transplant to Build U.S. Kit Plant
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