Despite all the talk about Detroit's partnerships with Chinese automakers and plans by Brilliance, SAIC, and others to sell cars in America, it looks like the Middle Kingdom is about to get beaten to the U.S. market by India. While the tiny Tata Nano may not be coming stateside any time soon, rival Mahindra & Mahindra's line of pickups should hit showrooms next year, and the brand will be promoted with $60 million in advertising over its first 12 months.
Previously in the mix to buy Hummer, Mahindra withdrew its interest in GM's off-road brand in order to focus on its own, more environmentally friendly products, which include two- and four-door pickups powered by clean diesel engines, as well as an SUV called the Scorpio that may come to America down the line. Part of the Mumbai automaker's "lean warrior strategy," the major selling points of the pickups will be that each gets an estimated gas mileage of 33 mpg on the highway and will be competitively priced. In the U.S., however, Mahindra trucks will be distributed by Global Vehicles USA, which currently has 325 dealerships lined up primarily on the East and West Coasts, as well as in the South, although most won't build new showrooms for the vehicles.
To help establish Mahindra with American truck buyers, Global Vehicles' ad campaign plans to focus heavily on internet marketing. President of marketing Xavier Beguiristain says, "We want to get consumers engaged with the brand if they buy or not." The $60 million will be spent on national, regional, and local advertising, targeting specific types of people -- such as fishermen who tow boats, landscapers, and contractors who prefer diesels for mileage and towing ability, and outdoors enthusiasts. In addition 80,000 Mahindra farm tractors have already been sold nationwide, and the company hopes to attract those owners as well.
Launching a brand in the highly competitive U.S. market is extremely challenging, even for an established name like Alfa Romeo. Whether or not Mahindra's strategy of a careful marketing plan and limited lineup is successful remains to be seen, but no doubt India's neighbors to the northeast will be looking on with considerable interest.
Source: Automotive News (Subscription required)