News - Mahindra
Mahindra moves into Australia
Indian giant takes an 80 per cent stake in new Mahindra Automotive Australia JV
7 Nov 2008
INDIA’S Mahindra & Mahindra Ltd (M&M) has formed a joint-venture company with the Australian importer and distributor of its Pik-Up utility, TMI Pacific, to market, promote and retail Mahindra vehicles in Australia.
M&M will be the major shareholder in the new Sydney-based Mahindra Automotive Australia (MAA) with an 80 per cent stake, while TMI Pacific will retain a 20 per cent ownership share.
MAA will continue to sell the Pik-Up, which was launched here in June 2007 following a 17-year hiatus for the utilitarian brand in Australia. It may also choose to introduce Australians to its first passenger car, the Logan, or its recently-announced motorcycle range.
The newly-formed company says it will reveal its future model plans and other new initiatives at a stakeholders’ meeting to be held in Australia early next year. Its 24-dealer eastcoast retail network, which began expanding into South and West Australia in July, will remain unchanged.
“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 TMI Pacific chairman Michael Tynan, who will become a director of MAA while former TMI COO Claire will be promoted to CEO. The “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.”
The $US6.7 billion Mahindra Group, one of India’s top ten industrial houses, announced a 14.1 per cent growth in gross revenues and a 9.3 per cent after-tax net profit for the second quarter of 2008.
“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,” said Dr Pawan Goenka, president of M&M’s automotive sector.
“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.”
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