M&M ties up with TMI Pacific, forms Mahindra Automotive Australia
07 November 2008
Mumbai-based utility vehicle maker Mahindra & Mahindra Ltd, has entered into a majority venture with its existing Australian vehicles distributor TMI Pacific to form a new distribution firm for its range of vehicles in Australia. M&M will own an 80-per cent stake in the new firm, Mahindra Automotive Australia, with TMI Pacific holding the rest.
''Over the past 18 months TMI Pacific has successfully laid the foundation and carved a niche in the Australian landscape for the Mahindra range of utility vehicles," said Michael Tynan, chairman of TMI Pacific and the Tynan Motor Group of companies.
Tynan "Working alongside Mahindra, we have built brand presence and believe that the stake that Mahindra is putting in Australian soil and the commitment they are showing to becoming even more strongly involved in our market is a testament to their belief in it. This affirmative action will provide even further confidence to the dealer network and to prospective customers. We welcome this positive move forward.''
Dr. Pawan Goenka, president, automotive sector, Mahindra & Mahindra Ltd, said, ''We are delighted to extend our relationship with TMI Pacific, which has contributed in large measure to the success of the Mahindra brand in Australia. As we merge to form a new entity, our collective dedication will ensure that the Mahindra brand will become further ingrained in the Australian market. We have a strong vision for international growth and this move is an integral part of that plan.''
Pravin Shah, executive vice president, automotive sector, international operations, M&M Ltd, said, ''TMI Pacific has worked tirelessly since the launch of the Mahindra Pik-Up last year and has helped make Mahindra a household name in Australia, demonstrating that it is indeed the right partner for Mahindra in Australia. The new JV company, Mahindra Automotive Australia, will undertake branding and promotion activities for the brand, further consolidating our presence on the continent.''
Under the new structure, which will be in effect as of this week, Michael Tynan will become a director and bring his rich experience of the Australian Auto Industry to the new venture. Chief operations officer, Claire Tynan, has been promoted to CEO, while the current team of head office staff and network of dealers around the country will remain unchanged. As before, their mandate will be to continue the growth and distribution of the Mahindra brand of vehicles throughout Australia.
Further plans for the new company along with future models for the market will be announced in an upcoming event for stakeholders, which will be hosted in Australia early next year.
Despite many automotive manufacturers feeling the economic crunch globally with job losses, factory closures, considerable cut back in production and work-weeks for some, Mahindra continues to grow strongly. During the second quarter ending 30 September gross revenues of the company grew by 14.1 per cent and net profit after tax excluding exchange loss and other exceptional and special items grew by 9.3 per cent.