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Mahindra South Africa CEO Ashok Thakur tells us more about the company’s competitive advantage, its new bakkie and plans for the group to grow across the continent. By Ian Armitage
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Mahindra focus manufacturing
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n May Mahindra South Africa added its lowest-priced Scorpio offering to the range of sports utility vehicles (SUVs) available in South Africa. The rearwheel-drive, seven-seater derivative, with a 2.2-litre turbocharged petrol engine, was priced at R209,900 – R20,000 less than the lowest-priced diesel-engine variant. It brought the firm’s local Scorpio SUV line-up to five models. It was a watershed moment. “The turbocharged 2.2 litre mHawk petrol engine was developed from the CRDe turbo-diesel engine of the same capacity in a joint venture involving our own engineers and those from global powertrain specialist AVL, of Austria,” the company says. “The introduction of the mHawk petrol engine, in addition to the recently upgraded mHawk CRDe diesel engines on the Scorpio range, is in line with Mahindra South Africa’s policy of ongoing improvement to its vehicles based on customer feedback.” Mahindra SA is a fullyowned subsidiary of Mahindra & Mahindra of India, which was established in 1945. Apart from vehicles, it also sells a range of tractors on the local market. The company has more than 50 dealers spread across the country and has sold around 16,000 vehicles since its inception in 2004. It has dealers in all nine provinces and has also expanded into other Sub-Saharan countries, exporting to Zimbabwe, Zambia, Botswana, Swaziland and Namibia. Further growth is on the cards. “We have a growing national footprint that is moving ever deeper into communities,” says Mahindra South Africa CEO Ashok Thakur. “Our drive is to offer value-for-money products and services to all of our customers.” www.southafricamag.com
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Mahindra focus manufacturing
Partnerships December 2011 saw the acquisition of Berco Express (Pty) Ltd by Aramex. As part of this global company Aramex South Africa, incorporating Berco, is able to provide a more comprehensive range of services through the global offices and strong alliance network. “We believe in partnering with our clients to provide them with cost-effective tailor-made solutions to suit their business. We employ a team of dedicated experts in our Business Solutions Team to provide smart flexible solutions,” explains Nick Brown, Business Solutions Executive.
Mr Thakur is clear about the firm’s competitive advantage, “Our latest price positioning enables us to undercut the prices of the traditional major players in the South African bakkie market, while still offering a very robust, reliable and durable product that has been well proven operating in South African conditions.” The local vehicle market is one of the largest and most dynamic in Africa. Mahindra South Africa sold 1761 vehicles in 2010, which grew to 2558 vehicles in 2011 – a 45 percent increase. That is rising. “Our product portfolio includes Bolero Pick Ups, Scorpio Pick Ups, Genio Pick Ups, Scorpio SUV, Xylo MPV, Xylo panel vans and Thar, and of course the new Mahindra XUV500,” says Thakur. 4
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“A good example of this partnership is Mahindra. Since 2007, we have stored, managed and distributed over 6000 line items to 28 Mahindra dealers nationwide.”
We have a growing national footprint that is moving ever deeper into communities
“We are continuously striving to improve the service we offer Mahindra, allowing them to focus on their core business.” Warehousing and storage represent a strategic business tool that gives many Aramex customers an edge over their competitors. It’s about more than just cutting costs!
The Mahindra XUV500, which was showcased at the Johannesburg International Motor Show, has been a huge success making a big impression in South Africa. “It has attracted a considerable amount of interest with over 100 units being retailed per month, making it one of the top ten compact SUV brands,” says Thakur. “We are delighted with the sales figures and the strong interest in our new product.” The Mahindra XUV500 is all-new from the ground up and aimed at both the Indian, South African and international markets. Needless to say, times have been good for Mahindra as a result. www.southafricamag.com
Mahindra focus manufacturing
It is targeting 50 percent sales growth this year. “We do aim to improve vehicle sales,” says Thakur. “Something like 50 percent. I think it is achievable.” It might seem ambitious but he is confident – Mahindra SA has what he calls a “growing model range, keen pricing and added value offerings”. Another reason for the optimistic growth target is that Mahindra SA has taken over the distribution of SsangYong vehicles in South Africa off the back of its Indian parent company obtaining the majority shareholding in the Korean manufacturer. “We sold over 2,000 vehicles in 2011 and are targeting 5,000 unit sales this year, rising to 7,000 in 2013,” says Thakur.
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“We are aware this is ambitious, but are confident of being able to achieve these sales. “Some of our dealers — and we have 50 in SA — are reporting increases in market share. We are also getting more and more applications from businesspeople looking to become Mahindra dealers.” Mahindra SA is also working on growing the number of African countries it services. “Expansion is planned into the Southern African Development Community. “We want to become an increasingly significant player in the region. “Going forward, we will continue to extend our range and provide added-value offerings to our customers,” says Thakur. END To learn more visit www.mahindra.co.za. www.southafricamag.com
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