Mahindra Group ready to invest in Sri Lanka ~ E-LANKANEWS

Mr. S.P. Shukla

Mahindra Group is looking at investing in a vehicle assembly plant in Sri Lanka

The US $ 15.4 billion Mahindra Group, one of India's leading business houses, is looking at investing in a vehicle assembly plant in Sri Lanka to cope with the growing demand. “Our sponsorship of the Sri Lanka Premier League signals our intent to both expand and deepen out relationship with the country as it moves steadily towards greater economic progress.
"Sri Lanka is an important market for us within the sub-continent. Over the past ten years, our vehicles and tractors have carved a distinct niche for themselves with their tough, rugged and fuel efficient nature,” said S P Shukla, President, Group Strategy and Member of the Group Executive Board, Mahindra & Mahindra Ltd. He said that they are also in the process of building an economical electric car for the mass market.

Mahindra-Group-ready-to-invest-in-Sri-Lanka

In FY 2012, over 10,000 Mahindra vehicles were sold in the country which is a clear validation of the credibility it enjoys among the consumers in the country,” said Nalin Welgama, Chairman, Ideal Group the automobile distributor of the Mahindra Group in Sri Lanka. He said that both companies are looking at an investment of around US $ one million initially for this project.

Mahindra & Mahindra Ltd has been present in the Sri Lankan auto market since 2002 with its product portfolio consisting of the Bolero and Scorpio SUVs and Pik Up range (Bolero Single Cab Flat Bed, Bolero Maxxi Truck, Scorpio Double Cab/Single Cab, Maxximo and Alfa 3 Wheelers. Sri Lanka is also the best overseas market for Mahindra Group.

Mahindra has emerged as the market leader in the pick up category (1 tonne – 1.5 tonne) with over 50 % market share. Moreover, in less than a year since its launch, the Maxximo has achieved a market share of 40 % plus in the less than one tonne mini truck category.
Mahindra has been selling its tractors in Sri Lanka for over a decade and currently has a market share of more than 16 %, placing it amongst the top two tractor brands in the country. The country recently also launched its Swaraj brand of tractors.
DIMO (Disel & Motor Engineering Plc), a large business conglomerate, is the distributor for the Mahindra range of tractors, while the Swaraj brand is distributed by Regal Motors Pvt. Ltd.
Asked by Daily News Business if the revised tax on motor vehicles did have any negative inpact on sales he said that light truck type vehicles (Maxxi truck) did not see and additional duty and sales were not affected. “However there is a ‘dip’ in two wheels and three wheel sales, which has helped the country to save foreign exchange.”

A US $15.4 billion multinational group based in Mumbai, India, Mahindra employees more than 144,000 people in over 100 countries.
The Ideal Group is a diversified group with interests in automobiles namely, Mahindra and Ssangyong, and with interests in automobile spare parts, finance, tyres and aviation.
Mahindra 2 wheelers