Mahindra and Mahindra trucks in US? See what is on the cards

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Mumbai | Published: November 22, 2017 5:58:32 AM

Mumbai-based auto major Mahindra and Mahindra (M&M) on Tuesday said it is one of the five shortlisted vehicle manufacturers selected by the United State Postal Service (USPS) to supply prototype delivery trucks for its postal service.

Mahindra and Mahindra, Mahindra, Mahindra trucks in US, United State Postal Service, auto newsRepresentational Image

Mumbai-based auto major Mahindra and Mahindra (M&M) on Tuesday said it is one of the five shortlisted vehicle manufacturers selected by the United State Postal Service (USPS) to supply prototype delivery trucks for its postal service. The company has already sent 14 units of its prototype for testing and evaluation. The order is expected to be for about 180,000 units. While it sounds like a great opportunity for the automaker, analysts feel that an order of such size can also pose a challenge. It is also not clear if the entire order of 180,000 units will go to one bidder. Most analysts are awaiting clarity on this from the company. Typically in India, any such bids would see at least two vendors being selected, but whether US Post follows any such process is yet unclear. USPS has asked for such a large supply of vehicles because it plans to entirely replace its old fleet of delivery trucks. USPS is likely to declare the winner of the order by June 2018. The other players in the race include, AM General (a military and commercial vehicle maker), Karsan (a Turkish commercial vehicle major), Oshkosh (a commercial and military specialty trucks maker), Spartan Motors (a firm that specialises in vans and parcel delivery vans) and VT Hackney (a Singapore-based aerospace, electronics and military contractor). M&M on Monday, unveiled a manufacturing unit for off-road SUVs in Detroit, US.

The off-road SUVs, which are designed for a recreational purpose, are targeted for the North American market. The company has invested $230 million in the new facility. By 2020, it plans to invest another $600 million for expansion. M&M also plans to launch SUVs from the stable of Ssangyong Motor Company, the Korean firm it acquired in 2010, to tap the on-road SUV segment in the US.

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