Mahindra & Mahindra scraps plans to sell pick-up trucks in US market

Mahindra & Mahindra Ltd. (M&M), part of the $15.4 billion Mahindra Group, yesterday said that it has suspended plans to develop a pick-up truck for the US market, citing legal issues and failure to get US regulatory approvals.

Mumbai-based M&M, which has spent around $100 million since 2006 in developing a pick-up truck based on its popular Scorpio utility vehicle, has failed to get US regulatory approvals resulting in its US dealers filing lawsuits in US courts.

M&M said in a statement, that it has "recently decided not to proceed further with the project due to changes in the US regulatory and market situation."
''M&M will continue to monitor the US situation and remain flexible with its approach to this market," the statement added.

M&M had missed several deadlines for launching the compact diesel pick-up truck in the US, which would have made it the first Indian company to sell an Indian-made vehicle in North America.

The automaker had earlier said that the delay in launching the vehicle was due to the changes made to the truck to conform to US regulations and American design preferences.

The company had also failed to get certification from the US Environmental Protection Agency.