current cycle of vehicle ordering from India takes more than two months, but that local assembly will see this drop to ten days.the 25% import duty on completely built-up vehicles will be replaced with an import duty of around 10%u
Mahindra and Mahindra International Strategy
Mahindra and MahindraINDIA NORTH & SOUTH AMERICA EUROPE MIDDLE EAST AFRICA AUSTRALIA
Mahindra & Mahindra Founded 1945 Key People -: J.C.MAHINDRA K.C.MAHINDRA Mahindra & MahindraLimited is part of the Indian G. MOHAMMAD Industrial Conglomerate Mahindra Group based in KESHUB Mumbai. MAHINDRA(CHAIRMAN)
Mahindra & Mahindra Automotive Revenue 23,803.24 crore Industry Farm Equipment (US$5.31 billion) Major automobile manufacturer of utility Net income 2,871.49 Employees 119,900 vehicles, passengercrore (US$640.34 million) cars, pickups, commercial vehicles, and two wheelers. Its global subsidiaries M&M has partnerships with include Mahindra Europe international companies like Srl. based in Italy, Mahindra Renault SA, France and USA Inc., Mahindra South International Truck and Africa and Mahindra (China) Engine Corporation, USA. Tractor Co. Ltd.
Joint venture Ford called Ford IndiaMAHINDRA AND Kinetic Motors in India REVA Electric Car Private Limited to MAHINDRA for two wheeler . Company build passenger cars. France and South Koreas International Truck Mahindra Europe SrlSsangYong Motor Renault SA for LOGAN and USA Company. EngineCorporation, Mahindra South Africa MahindraMahindra USA Inc and Mahindra (China) Tractors(China) Co. Ltd Tractor Co. Ltd.
SWOT Analysis • New Product Strong, recognizable brandStrength name: M&M. • Good Reputation among customers • Economic Crash • Competition betweenWeakness other companies.
SWOT Analysis • Higher chance to spread the reputation of the new product. • Unfulfilled customer needs.Opportunities • Advancement of technology. • Possible shifts in consumer tastes. • Possible increase in trade barriers due to the economic crash. Threats • New trading regulations.
PEST ANALYSIS – South Africa South Africa is a multiparty The bill of rights Political parliamentary also guarantees Type: democracy in which fundamental constitutional power Laws are strict. Parliamentary political and social is shared between rights of South democracy. the president and Africas citizens. the Parliament. Real GDP growth rate: Economical: GDP Approx. 11% growth (2008) 3.7%; (2009) -(2010): $357.3 billion. in automobile industry 1.8%; (2010) 2.8%.
Cont… The SouthSocio- culture African black South African majority still Many Asian Current culture is has a population inPopulation 50.5 diverse substantial urban areas million. number of rural inhabitants The countrys manufacturing output is increasingly technology- intensive, with high-tech South Africas technological research manufacturing sectors – such as and quality standards are world- machinery, scientific equipment renowned. The country has developed a and motor vehicles number of leading technologies, particularly in the fields of energy and fuels, steel production, deep-level mining and telecommunications
How Did They entered South Africa Set up a 50:50 joint venture with a SouthAfrican company Africa launched Scorpio -Automotive Investment sports utility vehicle Corporation in 2004. (SUV). Created Dealers and distribution channel. Imported vehicles from India.
SA automotive industry Sales Sep 2011 MANUFACTURER VOLUME TOYOTA 10171 VOLKSWAGEN GROUP SA 9382 JAGUAR LAND ROVER 436 SUZUKI AUTO 387 TATA 386 FIAT GROUP 351 UD TRUCKS 328 VOLVO CARS 304 MITSUBISHI MOTORS SA 229 MAN 210 MAHINDRA 155 SCANIA 120 NAVISTAR TRUCKS SA 94 SUB TOTAL 47384Source: http://www.naamsa.co.za/flash/portal.asp
M & M in USA1994: Incorporation of Mahindra USA Inc. as wholly owned subsidiary of M&M 2003: worldwide sales hit 1 million 2nd US facility opens in California 2005: 3rd US facility in Red Bluff 2007: Japan Quality Metal 2010: No.1 in Tractor Sales in worldwide
B2B in USA Mahindra Ugine Steel Co and IT service solution for ExxonMahindra Gears and Transmissions: Mahindra Composites supplies GE Mobil, Shell, Motorola, Nike, Palm, and Caterpillar and John Deere LSI Logic
M&M USA siteMobile-friendly compatibility to allow usersaccess via any tablet or smartphone device Rich imagery and helpful content for first- time tractor buyers Simple, accessible information simple new look, with extraneous information Build Your Own TractorMahindra USA earned our 98 percent loyalty rating
Management Strategy in USA STRONG Best service toDEALERSHIPS consumer Innovative Approach : AE50 Outstanding Innovation AwardLow-rate retail 2007 from ASABE financing (American Society of Agricultural and Biological Engineers) for Mahindra Shaan
Financial Overview The Company has 439MMFSL is a Mahindra the rural and branches covering 25 and Mahindra subsidiary, one of semi-urban states and 2 union India’s leading areas of India territories • in Indiatractor and utility The Company’s goal is FITCH has assigned to be the preferred AA(ind) rating and vehicle provider of financing CRISIL has assigned a manufacturer services in AA- rating The Company is to the Company’s one of India’s vehicles and used long term debt leading non-bank vehicles reflecting a highfinance companies degree of safety focused on the MMFSL finances purchase of utility rural and semi- vehicles, tractors, cars urban sector , commercial
Business Strategy Continue to maintain market position in rural and semi urban automobile financing Simple documentation and prompt loan approval procedures Nationwide network of branches and locally recruited employees help develop and maintain customer relationships Diversify Product Portfolio a joint-venture with De Lage Landen Financial Services