Mahindra keeping mum on sales

Indian tractor and ute maker Mahindra has released an updated version of its budget-priced Pik-Up with more safety features and a new look.

The line-up ranges from $21,999 to $29,999 drive-away to ABN holders, the same price as before but with additional equipment. Non ABN holders will pay about $1000 extra on each model.

The original Pik-Up scored a "poor" two-star crash safety rating by the Australian New Car Assessment Program (ANCAP), earning just 16.49 points out of a possible 37. The report said that, in the test, "the driver's head hit the hub of the steering wheel," and that the "steering column and dash components were a potential source of injury".

But changes to the new model are expected to improve the Pik-Up's result in the next round of testing.

With that improved crash safety rating, improved sales should result, however that will remain academic for the time being, since the local distributor for the Indian brand is not formally providing figures to the Federal Chamber of Automotive Industries' sales statistician, VFACTS. 

Mahindra returned to Australia two years ago when Sydney car dealer Michael Tynan and his family took up local distribution of the brand. But Mahindra and Mahindra itself took an 80 per cent stake in local operations in 2008, although it has left the distribution and the running of the company in the hands of the Tynan group.

The number of Mahindra dealers in Australia has grown from 10 two years ago to 20 today, with four dealers due to be appointed to fill the void in West Australia by the end of this year.

Dealers are expected to be appointed in South Australia and Tasmania (the two remaining states where Mahindra is not represented) in the next 12 months. Mahindra will also appoint additional service-only points across Australia over the next year.

Most existing Mahindra dealers are based in rural areas, given the vehicle's appeal as a hardy farm-hand. But the company plans to appoint more dealers in metropolitan areas to target the tool-of-trade ute market.

Despite being upbeat about its prospects in Australia, the local Mahindra distributor has so far refused to supply official sales figures to the Federal Chamber of Automotive Industries.

"Our main concern is building the brand. The last thing we wanted was to be scrutinised every month," says the CEO of Mahindra Automotive Australia, Claire Tynan. "It's just not our priority. Really the only people who are concerned about it are the media."

Michael Tynan admitted the FCAI had requested that Mahindra supply its sales figures. "I told them we will when we're ready."

The chief executive of the FCAI, Andrew McKellar, told the Carsales Network: "We would like Mahindra to be part of the sales tally locally because it will help provide more accurate reporting of the market and, indeed, Mahindra."

Claire Tynan says Mahindra has sold between 1500 and 1700 vehicles locally over two full years on sale, which is less than the forecast 1000 sales annually.

"We are happy with our progress but you have some good months and you have some bad months," she said.

The executive vice president of Mahindra's international automotive operations, Pravin Shah, said the company was committed to Australia.

"Every export market we have entered we have not left, despite the global turmoil, so we are here to stay," he said. "We want to grow slowly but steadily."

However, Mahindra has left Australia before, after a short and unsuccessful stint in West Australia between 1990 and 1993.

But things appear different this time around. Mahindra plans to expand the model line-up over the next 12 months and the company may start to supply sales figures at that time.

"Probably in about 12 month's time when we start importing Scorpio and we are tracking well, we'll look at it," she said.

The Scorpio is a 4WD wagon which shares much of its appearance and components with the Pik-Up. It's due to arrive in the first half of 2010. Mahindra also makes a people mover called the Zylo, and that is also under consideration for Australia.

The Pik-Up line-up

Single cab-chassis 2WD $21,999
Single cab Pik-Up 2WD $23,499
Dual cab-chassis 2WD $26,299
Dual cab Pik-Up 2WD $27,199

Single cab-chassis 4WD $27,199
Single cab Pik-Up 4WD $28,599
Dual cab-chassis 4WD $28,999
Dual cab Pik-Up 4WD $29,999

All prices are drive-away to ABN holders.

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