After home market, M&M wants to pip Tata Motors in Sri Lanka
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Homegrown SUV and MPV major Mahindra & Mahindra, which has already beaten Tata Motors in the domestic passenger car market in the market share sweepstake, plans to pip the country's biggest auto company in Sri Lanka too in the next two years, a company official has said.
Stating that the difference is only a few thousands between the two firms in the island country, Mahindra & Mahindra vice-president, international operations for automotive and farm equipment sectors Pradeep Kumar said, "We hope that in the next two years, we become No 1 in auto (segment) in Sri Lanka. We should be able to overtake them (Tata Motors) in a few years time."
Sri Lanka is the largest export market for Mahindra & Mahindra, but behind the Tatas and the company had sold 11,000 vehicles last fiscal.
"In 2010 fiscal, we sold 500 vehicles and last year, we sold 11,000 vehicles. This is the kind of growth, we have been getting from the market there," Mahindra & Mahindra chief executive, international operations for automotive and farm equipment sectors M. Ruzbeh Irani said.
Addressing the shareholders of Tata Motors, which is the largest CV maker in the country, but has lost the market in the passenger car space of late, Ratan Tata said he had great respect for Mahindras for their success even though he has a degree of sadness and shame to see that M&M has overtaken his company in the market sweepstakes.
The overall market in Sri Lanka is estimated to be around 35,000 vehicles, the company said. Mahindra & Mahindra plans to sell 15,000 vehicles this fiscal in its race to gain the leadership position in Sri Lanka. "This year, we are gunning for 15,000 automobiles till March," Irani said.
The company enjoys a market share of 16 per cent in the tractor market that is estimated to be around 6,000 units in Sri Lanka and aims to be the numero uno in the segment as well.
"It will be our endevour to be No one in tractors in Sri Lanka. It is going to take a bit of time before we gain leadership. We had 16 per cent market share last year," Irani said.
The Mahindras are also considering the option of setting up an assembly line in Sri Lanka for commercial vehicles, he added.
"We are currently importing from India. We are examining the possibility of CKD (completely knocked down) there (Sri Lanka) for assembly. It is at a premature stage. We are also looking at some Latin American countries. This would be more for commercial vehicles," he said.
The auto major has joined hands with Sri Lanka Premier League as the title sponsor for the upcoming tournament which kicked off on Saturday.
Kumar further said the company is also mulling to enter South East Asian countries.
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