M&M's US entry with Scorpio delayed

Davos, Jan 29 (PTI) Indian auto major Mahindra &
Mahindra's plans to enter the US market with its SUV Scorpio
is delayed due to unfavourable market conditions.

"We are not giving any specific timing, but it will be
certainly stretched beyond 12 months from now... probably next
fiscal would be a broad target," Mahindra & Mahindra Vice-
Chairman and Managing Director Anand Mahindra told PTI on the
sidelines of the World Economic Forum here.

The company had earlier said it planned to launch Scorpio
in the US latest by the end of 2009.

Mahindra said the company will be taking stock of the
market situation in the US before it decides to roll out the
vehicle there.

"This target (of launching Scorpio) would be reviewed on
the basis of how the US economy does and what is the most
propitious time to enter," he added.

Mahindra, however, said he was bullish on the American
market and with Barack Obama as the new President, there would
be feel good factor generated, that would help in the market
recovery.

"I think I am bullish on America, given Obama's new
presidency and the feel good factor in the US would come back
faster than what people predict. I think America would recover
faster than Europe," he added.

He said the vehicle has met all the emission standards
required for the diesel variant.

"We think selling in the world's biggest market is going
to be hugely beneficial for pulling our technology up and for
making us ultimately competitive with the best in the world,"
Mahindra said.

When asked about the acquisition plans, Mahindra said:
"In farm equipment business, we are looking at inorganic
opportunities as part of our strategy unlike in auto
business."

The company would continue to explore new markets, where
organic growth would be either too slow or too small.

"... (in) auto sector, we think that by definition
competitive advantage comes from manufacturing and developing
products in India, so we will look more at distribution
channels and brands if it is possible to acquire them in an
inexpensive manner, but we are not going to be cowboys about
this," he added.

Talking about the falling sales of M&M's mid-size sedan
'Logan' in India, which is co-developed with French auto giant
Renault, Mahindra said, "If we have not projected such high
numbers, there would not have been this much disappointment,
perhaps it was an oversight on our part."

He said M&M was comfortable with Renault and "if
opportunities come for the JV, we will look at them". PTI IND
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