M A H
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feature
A real
for the Auto Industry
Ashok Thakur, CEO of Mahindra and Mahindra South Africa, speaks with Erica Wark about their entrance to the South African market.
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ahindra & Mahindra South Africa (M&M) is a fully fledged South African company, directly integrated with its global parent company in India. They are committed to the long term development of their brand in South Africa, and to expansion in to the rest of Africa. With Mahindra Satyam (a Mahindra Group Company) having recently sponsored the Fifa World Cup, South Africa is set to see more of M&M’s presence, with funds now being directed towards marketing for the vehicles that have been imported to the South African marketplace.
Mahindra FEATURE
M&M are offering four different platforms of vehicles: The ‘Scorpio Pik Up’ and SUVs. SUV’s come in both automatic and manual variants. Scorpio platform now are available with both ABS and airbags. The ‘Xylo’, which is a 7-8 seater people carrier, fantastic for big families, tourist companies or rest houses. These are also now being offered as a panel van delivery vehicle. ‘Bolero Pik Up’ – which is a popular pick-up ‘Thar’ – A retro looking 4X4 recreational vehicle These vehicles are popular for private use as well as in the business world. The pick-ups have been particularly popular in mining and agricultural farming industries. M&M have found there has already been a good customer retention rate, as those who have used their vehicles have been so satisfied that they repeat purchase when expanding their fleet. Customer retention is something which is very important to M&M; they intend to be here in South Africa for the long haul. Ashok Thakur, CEO of M&M, is very proud of the products they have to offer in South Africa: “Our products offer both high quality and value for money. The vehicles are rugged enough to handle any terrain or circumstance; having already been accepted for their off-road performance in arenas such as the mining and farming communities. Moreover, they perform as well as, or better than, Japanese products, yet pricewise we fall in between high end Japanese/European products, and the low end budget Chinese vehicles. We believe, therefore, that we are in a unique position in the South African marketplace.” The move to the South African market was a huge undertaking for M&M, as it was their first overseas subsidiary. After investigation began in 2000 it was decided that Africa had the best
market conditions, with a rapidly growing market. M & M saw this as an opportunity to perform in a large overseas market and made the move to South Africa in 2004. Since their move the economic climate has been tempestuous. However, M&M have seen a steady uptake of their vehicles. Finally, November/December 2009 saw a real ‘pick-up’ in business. There has been a particular boom for them around the World Cup, and the business continues to move from strength to strength, with June being their best month to date. After sales care and customer loyalty is paramount to M&M; their core values are to provide a value for money vehicle and excellent after-sales assistance. To this end they have www.southafricamag.com
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Mahindra FEATURE
ensured they have a large inventory of parts across their dealer network in South Africa. 95% of parts are picked and despatched within the hour, which is a phenomenal statistic. All Mahindra dealers provide workshop facilities for their customers, enabling ‘peace of mind motoring’. Further peace of mind comes in the form of warranty on vehicles; the Scorpio Pik Up comes with 3 year/100,000 mile warranty, the Bolero Pik Up comes with 2 years/50,000 miles warranty. What’s more, Mahindra Financial Services offers competitive finance and insurance solutions for their clients. Thakur has also launched a Free Service Plan for Scorpio Pik Ups. This offer went live in June and has already received very positive reviews. This gives ‘peace of mind motoring’ to customers, but also, as this means no additional purchase of a service plan once provided by M&M the manufacturer, it enables M&M to further sharpen the price difference between their products and those of companies from the developed world.
At present M&M only import pre-assembled vehicles. However, if this positive upturn in business continues, they will be looking to initiate plans to begin to manufacture here also, providing more opportunities for local employment. M&M have already localised accessories and components such as bull bars, steel hooks and glass; which are all locally sourced. With over forty dealerships countrywide their national network is expanding. Certainly the recently published NAAMSA adjustments bode well for their continued growth in South Africa, with NAAMSA having already had to revise their growth prediction for the market from the projected 6-7% to the actual 20% increase they have witnessed. As testament to M&M’s company mantras of ‘Outstanding performance – Continuous quality – Unwavering commitment’, here are mention of some accolades that Mahindra & Mahindra have already been awarded in the Indian domestic market: Travel Companion of the Year — Awarded to Scorpio by the India International Tourism Council, 2006. Three Car of the Year Awards for Scorpio, 2003: BBC World’s Wheels Business Standard Motoring CNBC-Autocar
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