Mahindra & Mahindra, which has tied up with local partners Bramont in Brazil and Bavarian Motors in Egypt to assemble and distribute its brand of Scorpio and Bolero vehicles in those markets, may pick up a strategic stake in both the companies. Pawan Goenka, president automotive sector said, ?Right now, our business model is very specific to each country. We take a look at what makes sense for each country. There are some places where we have invested and others where we have not. We have an option available to us to buy into both the companies in Egypt and Brazil.?
Goenka was speaking on the sidelines of an event to celebrate the roll-out of M&M?s two millionth vehicle here.
The Brazil and Egypt facilities will have a capacity of manufacturing 5,000 units per annum which can be scaled up to 10,000 units with time. M&M would be exporting completely knocked down units (CKDs) to both these markets, with its partners handling the complete responsibility for assembling vehicles and distributing them. The move signifies the greater thrust that M&M is putting on grabbing a pie of the global market for automobiles through exports. Even as M&M is widening its lead in the utility vehicles segment in the country, the company has bigger and grander plans for the international market, and is going full hog on stretching its reach across the continents. Goenka had recently told FE, ?Today, our exports constitute 4% of our volumes. However, with our expanding geography and product portfolio, we plan to increase that number to 10% quickly and raise it to 20% within three to four years? time.?
Currently, Scorpio constitutes 75% of M&M?s exports, while Bolero and other products constitute the rest. Goenka said new vehicles Ingenio and the high end SUV coming out its stable in future would also be eventually exported to the international market. The Brazil facility will start operations in November, whereas the facility in Egypt will begin in April next year. Through its facility in Brazil, M&M will be able to export duty free to the markets of Argentina, Bolivia, Chile, Paraguay and Uruguay under the Mercusor pact. Whereas its facility in Egypt would only be confined to the local markets, with the opening up of markets in the neighbouring countries, M&M would expand its reach in those areas, Goenka informed.