This quarter will see the entry of M&M into the US market with its Scorpio. The President of Auto Sector said that the company is fully geared to meet the US demands and the process of regulatory approvals are getting into the picture. Navistar, with whom M&M has made a JV for making commercial vehicles in India will assist the US deal for M&M. Scorpio will be exported as fully built to the US till the production operations begin in the US.
The marketing will be through a distributor who has got a chunk of 300 dealers. The sale will begin in April-May this year and will vie against Ford and GM in terms of fuel efficiency and cost. The sale in the domestic market for utility vehicles was 1.5 lakhs with a 46% growth but is handicapped by insufficient supply of components to meet the demand.
This resulted with a loss of production to 5% during October-December and this downfall is likely to continue till March. The position may become feasible in April. Two more vehicles- Maxximo the truck and another heavy truck will be available in the Q4 of 2009-10 to expand the domestic market of commercial vehicles.