Mahindra goes to US in search of new growth
17 July 2017
Mahindra & Mahindra is all set to open an auto manufacturing plant in Detroit, in the US, with plans to invest $1 billion in the world's auto capital over the next two-three years.
The Indian car maker, which raked in revenues f $1.5 billion in the US, is expecting to generate $2.5 billion revenue and double the figures in next two-three years.
In signs that Narendra Modi's 'Make in India' is giving way to Donald Trump's 'America First', the Indian automaker, which currently employs around 3,000 people in the US, also plans to hire another 3,000 for its US greenfield auto manufacturing plant.
"We are looking at opening (the plant) this year. That's a major milestone where an Indian automotive company is opening up manufacturing in a resurgent Detroit. I think that's a wonderful twist of history," the Economic Times quoted group chairman Anand Mahindra as saying.
"I believe America will be one of the most rewarding places to invest. Trump's policies on immigration which have been criticised will play out with negative consequences almost five-ten years later but it doesn't take away the attractiveness of America," Mahindra told ET, adding "We are talking about doubling our $1.5 billion bet over the next two-three years."
A PTI report quoting Mahindra & Mahindra Managing Director Pawan Goenka said the quantum of investment would depend on various factors like market conditions and success of various projects that are currently underway in the US.
Besides the automobile project, Goenka said, the company has bid for a US postal service contract and if it comes through it would help the company grow exponentially in the country, according to the report.
According to Goenka, growth in the US would be led by various factors like the launch of a new off-road vehicle by its arm Mahindra North America Technical Centre (MNATC) besides other group entities.
"The growth will be led by Mahindra USA where we intend to double revenues from $500 million to $1 billion in next five years and then there is Tech Mahindra," he added.
The Mumbai-headquartered group, is also expected to move ahead with the global launch of its luxury electric sports cars, along the lines of Tesla Inc. The cars are being designed under the Turin-based Pininfarina brand, the Italian design and engineering house majority-owned by Tech Mahindra.
Mahindra is also planning to launch electric Peugeot Scooters in Europe in the near future.
As per the Trump Administration directive, the IT major Tech Mahindra now plans to add around 2,200 people in the US this year, which remains its biggest single largest market.
Besides, MNATC, Tech Mahindra and Mahindra USA, the group is also present across various other verticals, including aviation, electric two wheelers and supply chain.