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AUTO-LITIGATED: Mahindra in USA- impact of litigation on Mahindra trucks on tractors and SUVs
Early June 2010, Global Vehicles, an Atlanta based company which was earlier Mahindra’s partner filed a lawsuit against Mahindra for its delay in certifying its trucks and SUVs for sale in USA. Lot of angry investors and dealerships reacted to this fiasco by sharing their comments and opinions on the online space, many who say that Mahindra has self-destructed its brand with this delay. Read here for some more interesting viewpoints on the litigation: http://news.pickuptrucks.com/2010/07/global-vehicles-responds-to-new-comments-from-mahindra-about-pickup-timing.html
Here are some of the questions in our minds when we heard this news:
How much has the tractor brand been tarnished and what is the short/medium term impact to the revenues for tractors?
Can Mahindra weather the storm and make a successful entry into the US markets for trucks and SUVS?
On entry, can they adapt to US preferences and grab market share to obtain a position of strength like their tractors.
Here are some of the observations from our social media research:
Despite the fact that Mahindra trucks and SUVs have not yet been released in the US market, there have been nearly over 100,000 mentions for the same
Despite the lawsuit, research uncovers that there is enough excitement for the launch of Mahindra trucks in USA, with people appreciating its rugged and high quality nature along with it being agile, sturdy and efficient.
For Mahindra SUVs, the sentiment is not positive. 44% of the mentions are unimpressed with the style and design of the yet to be launched Mahindra SUVs, branding it as “metrosexual”. Although, people are excited about the longer warranty period, nearly 43% feel that SUV accessories will not be available easily and that the engine is less than 200 HP which is insufficient for American roads.
Mahindra is amongst the Top 3 tractor manufacturers in the world. 32% of the online mentions in USA say that Mahindra has the best garden tractors and like them for their all weather compatibility. 38% assume that the litigation is relevant for tractors as well. Increasing number of negative mentions for tractors are about people not trusting the Mahindra brand showing that the litigation on trucks and SUVs has impacted their 16 year old tractor brand.