Mahindra South Africa aiming to buck declining market trend in 2015

17th July 2015 By: Irma Venter - Creamer Media Senior Deputy Editor

Mahindra South Africa (MSA) hopes to see between 20% and 25% growth in sales in the current financial year, compared with the previous financial year, “despite the local market declining”, says CEO Ashok Thakur.

MSA sold around 4 000 units in the previous financial year, running from April to March.

MSA’s best sales year in its 11-year history has been the 2013 calendar year, when the Indian brand sold 4 056 units in South Africa.

The brand’s domestic vehicle parc is around 30 000 units.

“We are confident we can grow our market share. Starting from a low base, this will not upset the market, but it will be significant to Mahindra’s business in South Africa,” says Thakur.

He says the brand’s commitment to the local market is paying off, with its dealer network willing to invest “more and more” in Mahindra, and customers experiencing that all warranties are well honoured.

This imported automotive brand has also been bolstered by its investment in parts availability, training and a strong focus on product quality, responsiveness to customer and dealer needs and after-sales service, says Thakur.

“We wanted to make everything faster and more efficient, for the customer and the dealer.”

MSA has a dedicated training facility at its head office in Centurion.

The company will see ten new dealers open their doors in 2016, adding to a 60-strong network.

“We want to strengthen our presence in the Durban, Gauteng and Cape Town regions,” says Thakur.

Focus on Bakkies, Cars
MSA in March launched its Bolero BMT pick-up, which it says is the best-priced one-ton diesel bakkie in the local market.

At R127 995, the workhorse is targeted at competitors such as the Tata Super Ace.

“We are currently sold out on BMTs,” says Thakur. “We have seen a lot of interest in this product from small and medium enterprises.”

September will see the introduction of the refreshed XUV500 sports utility vehicle (SUV).

Improvements include lower fuel consumption, with one more kilometre per litre of fuel used.

“This seven-seater offers 2.5 t towing capacity, six airbags, dual air conditioning, a free service plan, a navigation system, and a five-year/150 000 km warranty.”

A new model on the horizon is the S101, which Thakur describes as an “aspirational, A-segment” passenger vehicle that will launch Mahindra into the fast-growing entry-level market. (It is interesting to consider that most of the entry-level vehicles in South Africa actually originate from Indian factories, such as the Toyota Etios.)

“We hope the S101 will boost Mahindra’s sales significantly,” says Thakur.

Two models also under consideration for local introduction are the Jeeto and the Maximo sub-one-ton passenger and cargo vehicles.

Thakur says Mahindra is reaping the benefits of expanding its research and development capabilities, including the new design facility built in Detriot, in the US.

“Mahindra & Mahindra has a vision to introduce radically different, more modern products onto the global market.”