Mahindra & Mahindra gives up on selling in Brazilian market, Sold 4000 cars in 7 years
After enormous attempts to push sales during the seven years of operations, as per reports, Mahindra & Mahindra’s Brazilian agent Bramont shut down its facility in the country. While the brand already had limited takers in the country, moreover, the outdated products and the intricate production procedure made it absolutely impractical to retail Mahindra vehicles in the Latin American country. In its 7 years of operations in Brazil, India`s premier UV maker could only manage to sell around 4000 units even though it had 5000 vehicles per year of production capacity.
The company’s sales agent, Bramont was in-charge of selling, importing and assembling Mahindra’s products in the Latin American country. Mahindra sold two models in the country- the Scorpio pick-up and the muscular Scorpio SUV as the MOV (Mahindra Off-Roading Vehicle). The MOV model is nothing but the previous gen Scorpio, which is powered by a 2.6 litre oil burner having, ABS, dual airbags, 4WD, leather upholstery and an outdated design which didn’t work wonders in the Brazilian market.
Mainly, the tedious assembly procedure was complex and expensive enough to deal with. Firstly, the Knocked Down kits were imported from the Mahindra factory in India. The vehicles were then sent to Pouso Alegre a southern region of Minas Gerias state, thereafter the tedious procedure of assembling the vehicle in separate assembly units located across the territory of Minas Gerias. Then, the welding and painting of the bodies of the vehicles were done after which they were sent to the plant located in Manaus owned by Bramont to complete the fitting of the axle, gearbox and engine, after which the vehicles were shipped to Uberlandia in South Eastern Brazil to get it distributed to different dealers. The overall process was cumbersome and highly expensive, with the decade old Scorpio showing its age.
This news is a letdown, as Brazil is considered to be one of the fastest growing economies in the automotive space. Other than M&M giving up on car selling, the company is sure to pursue its tractor business in the Latin American country, which is consistently doing healthy numbers.
Source – Just-Auto.com