The Mumbai-based tractor manufacturer turned car maker has a strategic plan to transition from farmers’ fields to suburban driveways.
And a key part is a forensic analysis of customers as it introduces a new product line – including a contemporary take on the traditional diesel ute alongside forthcoming electric vehicles.
With new products (the XUV700 and Scorpio SUVs) recently launched, the Australian division is gearing up to be at the forefront of the mothership’s global goals.
The goal of the “Global Vision” – announced in October by Rajesh Jejurikar, Chief Executive Officer and General Manager (Automotive and Agricultural Equipment) of Mahindra – is to double and a half the profits of the automotive department across India. financial year 2026. But Mahindra wants its Australian department to do even more than that.
It’s a tall order: The logo has been around for decades, but it’s hardly on the average new car buyer’s list of choice.
The Mahindra brand first appeared in Australia’s new-vehicle showrooms in 1990 with a small batch of its Peugeot diesel-powered Pik-Up, before a wider visit in 2007 distributed through Sydney-based Tynan Motor Group.
The Australian branch is now headquartered in Brisbane after Mahindra took over the company in 2011, and it is from this base that it intends to make its biggest strides on the island continent.
Newer brands have become prominent on local new car buying lists, adding a disruptive and reborn MG, which is now listed in the top 10 most sensible in Australia, in our sales of more than 50 brands. Now you need to get in.
“The logo has been synonymous with ruggedness, an authentic and resilient logo, and we’ve focused on SUVs and vans,” says Moitra, speaking from the company’s headquarters in Brisbane. “We’re not interested in sedans or any other passenger vehicles.
“We’re [locally] in Queensland and from there we’re evolving into smaller cities. . . such as Toowoomba, Rockhampton and parts of Victoria. We have been manual transmission [vehicles] for a long time; we’ve been incredibly specialized in Australia. , and we only offer pickup trucks and SUVs with more common manual transmissions.
While Australia’s new car market is notoriously competitive, to say Mahindra knows how to succeed is an understatement.
Mahindra
He bought the Peugeot bicycle business in 2014 and owns the legendary design house Pininfarina.
“We’ve noticed this total evolution over more than 50 years or more [globally] of the country, as a do-it-yourself visitor towards, now, more modern subways, smaller suburbs, etc. In a sense, the total profile of the Mahindra visitor has absolutely evolved. It’s more common,” Moitra says.
Moitra believes the time has come for the Australian subsidiary to play in the big leagues, with multiple points combined to drive its mass market advancement: a three-pillar product strategy based on design, generation and affordability to capitalize on them .
There will be several threads in its product range: diesel vehicles, SUVs and electric vehicles.
Mahindra’s first monocoque vehicle was the XUV500 introduced in 2011, succeeded by the more accomplished and much more mature XUV700, which remains one of the most affordable SUVs for its size.
Then there’s the new full-chassis Scorpio SUV, also budget-focused, above the range’s XUV700.
They’re next to the dated, clunky-styled S11 Pik-Up, which is an apparent hangover from the “old” Mahindra.
“I think with the new Scorpio and XUV700 products we’ve evolved,” says Moitra. “They’re smart products and they’ve been smartly successful, which has given us confidence. “
“There are huge opportunities as these are not unusual product segments for our network of brokers. These are high-volume SUV segments in Australia, so it’s transparent that the growth of the business, whether for Mahindra or for the broker network, is now focused on those two products. .
The SUV segment accounts for more than a share (56 per cent) of new car purchases in Australia, making it well ahead of the second-largest light commercial vehicle segment this year at 22 per cent.
“Our XUV700 SUV competes head-on with various Japanese and Korean logos. I think we’re competitive in terms of price, that’s why the logo has evolved. . . The price proposition will remain critical, and will remain so from the start.
“So, as everyone looks to move into higher, higher-level territory, I think we’re going to be able to offer very strong differentiation with democratized technology. . . The concept is to continue to be that original logo of being a workaholic, but make it a lifestyle. “
“Clearly, we are seeing that the products that we are designing, developing, and of course taking inputs from Australia during design development, testing it in Australia and then launching it into Australia, we are seeing reasonable success,” he adds. “We see that there is a very good opportunity for this brand to scale up operations.”
The design alone of its last two SUVs exemplifies some of the strides the logo has made, a far cry from its origins in Jeep construction (although the company still hopes to introduce the Thar off-roader in Australia if it can go beyond the Wrangler). legal formalities based on Jeep’s objections, as was the case in the U. S. in June).
A significant step from its derivative origins is its global design centre, M. A. D. E, which stands for Mahindra Advanced Design Europe and opened in August 2022 through Mahindra Group Chairman Anand Mahindra and UK Minister for International Trade Ranil Jayawardena.
The Banbury, Oxfordshire facility has 30 workers and teams for prototyping, adding three-dimensional modelling, scanning suite and virtual truth (VR) modelling.
“Design is key to achieving Mahindra’s appeal in Australia and around the world,” says Moitra. “The concept of creating a design center to utilize the skill there and make it the center for the overall design of our products. “
The Thar. e concept heads Mahindra’s electric sub-brand, Born Electric, and the company is set to produce at least models from its new EV-specific factory in Pune, southeast of Mumbai, with a shared platform deal with Volkswagen.
An electric Mahindra is expected to be available in Australian showrooms in the near future.
More salivating for Australia is the Global Pik Up concept unveiled in August, which – with its striking exterior executed by the Mahindra India Design Studio (MIDS) – is a like-for-like illustration of the shift in the company’s car making business.
The dominance of local sales charts by dual-cab utes – with the Toyota Hilux the best-selling vehicle here every year since 2015 – and Mahindra’s history of off-road and utility vehicles is another checkbox making Australia a key market, both in terms of commercial growth and product development.
“There’s a lot of benchmarking done on our [branded] products sold in Australia,” Moitra says when asked about the Pik-Up.
“I don’t need to be too vocal about it. . . But yes, definitely: we operate to degrees in terms of progression and testing done through us, as well as with progression partners or critical providers, so we know that many UTIs are being developed in Australia.
Although it may seem simple, Mahindra’s goals in Australia are ambitious, yet admirable.
“Right now, we think that opening up the market, just seeing that new brands have a chance in the minds of consumers, the fact that they’re willing to give a chance to newer and newer products, is a fantastic opportunity for us. It is not a closed market from the customer’s point of view.
Success may not be immediate and, when asked what it will look like in five years, Mahindra acknowledges that strong long-term product diversity is crucial.
“I don’t want to be saying we’ll be in the top 10 or top five [brand in Australia], but as far as we are concerned we would like to see a much higher growth than the global two-and-a-half [revenue target].”
“Globally, we are now modestly . . . Australia will grow much faster when we launch the right portfolio. »
That’s where visitors’ comments and wishes come into play, he adds.
“It’s not just about direct shipping to Australia, it’s also about the market: being close to the customer. . . due to dynamic demographic changes in a market like Australia, this is not an option; This is our biggest challenge. “
Nothing illustrates Mahindra’s growth
The Mahindra Research Valley (MRV) near Chennai and the new Mahindra SUV Proving Track (MSPT), about 50 kilometres away, are key to the product and its development.
The MRV is located in the 1,500-acre Mahindra World City, which is also home to the Indian operations of other global automakers.
MRV is home to Mahindra’s product testing and progression services for everything from electronics, powertrains, chassis progression, safety, ergonomics and acoustics. It is a facility that allows Mahindra to compete with the world’s leading car brands.
The 450-acre MSPT has been built specifically to test and expand the diversity of Mahindra’s SUVs and tractors on all types of terrain and conditions.
It features a four-kilometre, four-lane high-speed control track with 1,100-metre straights connected via banked curves of up to 44 degrees on the high-speed track, designed to control cars at speeds of up to two hundred kilometres. /h.
Some of the road surfaces are designed for ‘accelerated durability testing’. The General Durability track is a 5.5-kilometre circuit that takes in all of these various surfaces and conditions, and it’s constantly being used by various vehicles at different stages of their development.
There are also simulated suburban roads, a 250-metre-diameter skid pan, handling tracks, a sand pit, a tractor track and water baths where the depth can be controlled.
The facility also includes a 4×4 control track that is not only used to expand and overhaul your own vehicles, but is also open on weekends for consumers to revel in the off-road features of Mahindra Thar and Scorpio.
The trail begins with a bascule bridge over a creek and includes deep stepped pits, steep climbs and descents, rocky trails, water crossings, articulation tests, rocky slopes, side slopes, pipe and tire passages, patches of sand, cobblestones, and just about anything. otherwise, it will be located out of the ordinary.
Still, Mahindra will have to achieve all of that to prove itself in Australia.
This article was originally published in the 2023 Wheels Yearbook, on sale from December 18.