By Priya Singh
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Updated On: 29-Nov-2024 06:15 AM
Despite the challenges, Mahindra's pickups have already gained a strong presence in Paraguay.
Key Highlights:
Mahindra & Mahindra Automotive is set to reintroduce its popular pickup trucks to the South American markets, focusing on Paraguay and Peru. The company is attempting to restart sales in both countries, hoping to build on its earlier success in the region.
This move comes ahead of the planned visit of Paraguay’s president to India in 2025, which could strengthen trade relations between the two nations.
Meeting with Indian Ambassador to Paraguay
In a recent meeting, Indian Ambassador to Paraguay, Yogeshwar Sangwan, discussed Mahindra's plans with Brij Bansal, a representative from Mahindra.
Ambassador Sangwan told Financial Express Online that during the discussion, Bansal mentioned that Mahindra's pickup trucks in Paraguay are priced 20% lower than models from competitors such as Toyota and Ford, despite freight charges from India. This price advantage puts Mahindra in a competitive position in the Paraguayan market, where other main pickup brands are produced regionally in Argentina and Brazil.
Indian Automotive Presence in Paraguay
Despite the challenges, Mahindra's pickups have already gained a strong presence in Paraguay. The country also hosts distributors for other Indian brands like Tata commercial vehicles, Royal Enfield motorcycles, and Bajaj motorcycles, highlighting the growing influence of Indian automotive products in the region.
Challenges in the Paraguayan Market
Mahindra faces some logistical challenges in Paraguay. While the company currently works with a distribution partner, Reeder, there have been issues in recent years. Mahindra is considering whether to resolve these challenges with Reeder or find a new partner.
Expanding into Peru
In addition to Paraguay, Mahindra is looking to expand into Peru. In Peru the economic relations with India have been growing. Bilateral trade between the two countries reached USD 3.12 billion in 2023, with major exports from India including automobiles, motorcycles, and pharmaceuticals.
According to the United Nations COMTRADE database on international commerce, India's exports of motor vehicles for the transportation of goods to Peru was US$6.41 million in 2023. The data was last updated this month.
Strong Trade Ties with Peru
Peru exports significant amounts of gold and copper to India, and the two countries are expected to strengthen their economic ties with a trade agreement planned for 2025. With its competitive pricing and strategic plans, Mahindra is positioned to make a strong comeback in the South American market.
Also Read: Mahindra Sales Report October 2024: Experienced Growth of 10% in Domestic CV Sales
CMV360 Says
Mahindra’s reentry into the South American market seems promising, especially with the competitive pricing of its pickups. While there are challenges with distribution in Paraguay, the brand’s strong reputation and growing presence in the region give it an advantage. With solid plans for expansion, Mahindra has a good chance to succeed in these markets.