Mahindra & Mahindra Automotive is preparing to reintroduce its popular pickups to South American markets, focusing on Paraguay and Peru. The company is working to restart sales in both countries, aiming to build on its previous success in the region. This move comes ahead of the expected visit of Paraguay’s president to India in 2025, which is likely to further enhance bilateral trade ties between the two nations.
In a recent meeting, the Indian Ambassador to Paraguay Yogeshwar Sangwan, met with Brij Bansal, a representative of Mahindra & Mahindra, to discuss the company’s plans.
Ambassador Sangwan told Financial Express Online that in the meeting Bansal highlighted that Mahindra’s pickups in Paraguay are priced 20% cheaper compared to models from competitors like Toyota and Ford, despite the freight costs from India. This pricing advantage positions Mahindra as a competitive player in the Paraguayan market, where other major pickup brands are produced regionally in Argentina and Brazil.
Challenges
However, Mahindra’s re-entry into the market faces some logistical challenges. Currently, the company has a distribution partnership with the Reeder company in Paraguay, but this arrangement has faced difficulties in recent years. Mahindra is considering either working with Reeder to address the issues or seeking a new distribution partner altogether.
Despite these challenges, Mahindra’s vehicles, particularly its pickups, have already gained a solid foothold in Paraguay. The country also hosts distributors for other prominent Indian brands, such as Tata commercial vehicles, Royal Enfield motorcycles, and Bajaj motorcycles, showcasing the growing presence of Indian automotive products in the region.
In Peru
Beyond Paraguay, Mahindra is also eyeing the Peruvian market, where the economic relationship with India has been growing rapidly. Bilateral trade between India and Peru reached USD 3.12 billion in 2023, with Indian exports to Peru largely consisting of automobiles, motorcycles, and pharmaceuticals.
According to the United Nations COMTRADE database on international trade, India exports of motor vehicles for transport of goods to Peru was US$6.41 Million during 2023. This data was last updated this month.
Peru, in turn, exports significant amounts of gold and copper to India. The two countries are set to further strengthen their economic ties with a trade agreement expected to be signed in 2025.
With a strong pricing advantage and strategic plans in place, Mahindra & Mahindra is poised to make a successful comeback in South America.
