MAHINDRA:
CREATING SCORPIO
GROUP-4
AAKASH | SRIDHAR | NEHA | CHAITANYA | TRISHUL | VIVEK
GLOBAL AUTOMOBILE INDUSTRY
Industry was dominated by:
◦ Big three(GE, Ford and Daimler Chrysler group)
◦ Big two(Volkswagen, Peugeot)
◦ Japanese players (Toyota, Nissan and Honda)
Japanese model :
◦ emphasised on close working relationship with suppliers.
◦ Shorter production period (12-18 months)
◦ Making highest profits per car reeping between ($1400-$2400)
U.S automakers:
◦ emphasised low cost over developing long term supplier relationships ◦ Production period (2-3 years)
◦ Profit between $178-$48 per vehicle
MAHINDRA & MAHINDRA: A BRIEF
• Founded by KC Mahindra & JC Mahindra
HISTORY
1945
• Imported & Assembled Willys Jeep kits
1956
• Listed in BSE
1954
• Started manufacturing Uvs
1960-80
1994
• Manufactured LCVs and Tractors
• Mahindra USA was set-up
1995-99
• Joint venture with Ford to manufacture Ford Escort
1997
• IDAM was set-up to focus on product development
2000
• Mahindra Bolero was launched
2002
• Launched Scorpio from Mahindra
2003
• Scorpio was awarded car of the year at CNBC AutoCar
• Launched Scorpio in Uruguay, Italy, Russia and South Africa
1. What made M&M to create a
Globally competitive SUV at low cost?
Image Transition
Catalyst to make M&M world class
Increase in demand for UV’s with 18% & 35% growth in
2003 and 2004
Tap into Growing Indian Passenger Car Market
◦ Growing at approx. 30% annually
◦ People/vehicle was 206 in India as compared to Asian average of 32
Availability of easy financing for customers
Increase in disposable income from India’s improving economy Competing against Global automakers in a price sensitive market Improvement of road networks and reduction in excise taxes
2. What has Mahindra as a parent leveraged to Scorpio project and what contribution is made by Scorpio team to
• M&M's well established namecompany in India the parent
?
• Strong image in rural market for