Pick-up trucks and EVs to help M&M accelerate global expansion

With new capacities coming on stream, Mahindra & Mahindra, the country's largest SUV maker in terms of revenue, is looking to accelerate its globalisation plan that envisages more than doubling its international business in three years. Veejay Nakra, Ppresident of the automotive business at Mahindra & Mahindra, said the company's aspiration would be to target double- digit market share in key regions of Australia, South Africa and certain Latin American markets, and that the company has devised a three-tiered international expansion strategy.

As part of a new globalisation plan, M&M plans to expand volumes in markets using XUV 700, Scorpio N and other legacy products, besides adding LHD variants for markets like Latin America. In phase II, once the battery electric vehicles (BEVs) are rolled out in India, the company would export these to the UK. Phase III would see the company looking at acquiring double-digit market shares in key markets, along with expansion into new geographies, selectively adding the markets for pick-up trucks and EVs. 

To be sure, Mahindra is the fastest growing brand in South Africa at present and has an assembly base there. Recently, it had launched the XUV 700 and Scorpio N in Australia; the products have received a very good response.

Currently, the exports merely account for about five percent of its total volumes. The company is exporting about 30,000 units annually. 

Autocar Professional understands the company may look to expand its annual volumes to over 80,000 units in three years. This could surely more than double the international revenues.

The company has not shared specific. But at an FY23 earnings conference, Anish Shah, MD of Mahindra & Mahindra, said the company was looking at a 2.5 times increase in its international business. 

M&M eyes the UK and EU with BEVs and global pick-up trucks for ASEAN, South Africa
Along with the SUVs, Mahindra & Mahindra is also looking at bringing an all- new global pick-up truck and EVs that were showcased in Cape Town in August. The new global pick-up truck has been designed keeping in mind the key markets of ASEAN, South Africa, Australia and Latin America. The EVs are being designed keeping in mind the evolved markets of the UK and Europe, too; the company may resort to an only-EV entry strategy in these regions. Nakra says, "EVs are at the core of our internationalisation plan. However, at present, we are mapping out the launch strategy for the pick-up trucks and EVs. We are currently analysing the potential of each of these markets and it will be a key pillar of the global expansion strategy." 

While the company did not share any timelines for the launch, the start of production for the pick-up truck is planned for the middle of 2025. The project is codenamed Z121 and it is likely to be available in both single and double cab versions. The company is planning an annual volume of 48,000 units.

"Of the global market of five million pick-up, the segment we are targeting is two million units large. We are talking about addressing multiple needs of commute, lifestyle, off-roading and sports with this new mid-size global pick-up truck. It is built on key pillars of tough, versatile, truly capable, tech-first features, very high on safety," added Nakra.

This feature was first published in Autocar Professional's September 1, 2023 issue.

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