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Mahindra May Offer Diesel-Electric Hybrid SUV in the U.S. - 4/7/08

Mahindra & Mahindra a major utility vehicle manufacturer in India is offering a few of their vehicles in the U.S., the world’s largest market for sports utility vehicles. The Scorpio SUV and Scorpio pickup will be the first Indian SUV offered to the American public. Almost 50% of worldwide sales for SUVs are from the U.S. market. Over 7 million SUVs and pickups are sold in the U.S. every year. Pawan Goenka, president of the automotive sector said, “With our experience in Europe and South Africa, we now believe we have the confidence to take on global competition in the U.S.”

Observers say a diesel electric hybrid version of the Scorpio will be offered along with the gas models. A low priced diesel electric will certainly draw some attention from the biodiesel community. Homebrew biodiesel can be made for only 71 cents a gallon, add this to a diesel electric hybrid SUV and you have a match made in heaven.

Ironically the brothers Mahindra got their start in the Indian market after WWII by adapting the American Willys Jeep, which would do well on India’s rough roads. In fact the front end of their Mahindra pickup looks just like an old CJ7 jeep. It is not sure if their jeep/utility looking vehicles will be offered in the U.S. in the future.

Automotive News ranks M&M at 34 on their list of global vehicle makers. The India car maker is not a stranger to the U.S. They had an eight year franchise agreement with International Harvester in 1971 after which they began building their own line of tractors. In 1994 they entered the U.S. tractor market in the U.S.

M&M has turned to Global Vehicles, a Georgia based company to sell their automotive products state wide. M&M expects to price their first SUV and trucks in the low 20’s. Their SUV will butt heads with Hyundai’s Tuscon and Kia’s Sportage. The Indian manufacture will need to bring matching features and warranty to the game to compete. Their small pickup should be their most popular vehicle because Japanese and American automakers have abandoned the market. As fuel rises, the giant American made pick ups will be less desirable over a small pickup, getting twice the gas mileage.

If M&M can make their four cylinder diesel engines U.S. compliant, they will be very popular among the diesel and biodiesel population. A small affordable and economical pickup would establish a beachhead for them in the world’s largest and most competitive automotive market. Expect to see these Indian made vehicles in the showrooms the summer of 2009.

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