One of the many theories for Mahindra’s absolute botching of its long-anticipated US launch is that the Indian automaker was too busy last year acquiring its diesel-4×4 soulmate, Ssangyong. Both firms got their start building Jeep CJs, both specialize diesel-powered vehicles, but while Mahindra focuses on trucks and old-school SUVs for the developing world, Ssangyong has more experience with crossovers and MPVs as well as sales in mature markets like Europe. Together, they make an Asian invasion of diesel-powered 4x4s far more likely to succeed in the US, and Automotive News [sub] reports that the plans are already in the works. According to Chairman Yoo Lee [via AN [sub]], Ssangyong sees itself selling about 20k units in the US

two-to-three years from now – but within five years at the latest.

If true, this explains why Mahindra backed out of its deal with US distributor Global Vehicles: rather than cobbling together a sales network for pickups alone, Mahindra needs to plan for an independent dealer network in the states that’s capable of selling Mahindra pickups and SUVs, Ssangyong’s brand-new Korando crossover (reviews here and here) and possibly even REVA EVs. Think of it has one-stop shopping for all your developing-world 4×4, diesel and tiny electric car needs.

Ever since Volkswagen bought not quite 20 percent of Suzuki a little more than a year ago, industry observers said: “Now what?” To this day, the couple remains childless. Lately, there have been rumors that the impatient German side is pushing for offsprings, whereas the Japanese side stays chaste. Now finally, there might be results – if India’s Economic Times has the correct information. Read More >

Automotive News [sub] reports that Global Vehicles, a firm with a contract to distribute Mahindra pickup trucks in the US, has dropped its lawsuit in US court in an apparent attempt to rescue its distribution deal. The contract between Mahindra and GV called for British arbitration of disputes, and apparently the British arbitration panel required that all claims be handled through it rather than in US courts. The dropped suit would have required Mahindra to press forward with its US launch regardless of pending arbitration. Mahindra, meanwhile, has said it is looking outside of its deal with GV for a US distributor, so it’s not clear if GV’s olive branch will even make a difference.

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Car sales in India powered ahead in January. India added 184,332 passenger cars to its roads, up 26.3 percent. According to the Hindustan Times, this was  “the highest ever in a month eclipsing the previous record set only three months ago.” Allow me to use this opportunity for a small lecture on the use and abuse of auto industry statistics, in Asia, and around the world. Read More >

A study by Booz & Co, that calls itself “one of the leading management consultancies in the world,” predicts that India will be the world’s 4^th largest car market by 2015 and will surpass the European Nations by 2015. I don’t doubt that India is a very important market with great growth potential. But Booz & Co must have consumed too much of its namesake. Read More >

Mahindra’s abortive plans to bring its rugged diesel-powered pickups to the US began back in 2007, just as gas prices were starting to run out of control. Now, after years of delays, steadily-increasing prices and general neglect of the compact pickup market have served only to whet our appetite for efficient little developing world-style trucks. Throughout the the last several years, Mahindra has battled with its US distributor, pulled out of other US efforts and generally failed to deliver… all while dangling the dream of a 30 MPG diesel pickup at hopeful enthusiasts. But, as it turns out, Mahindra’s problems don’t end with distribution: though its diesel engine was approved by the EPA, we hadn’t seen EPA confirmation for the long-held 30 MPG goal. Well, the EPA just released the window sticker for the Mahindra TR40 [via MahindraPlanet], a 4X4 four-door version of its 2.2 liter diesel pickup… and it gets nowhere close to 30 MPG.

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Emboldened Tata has announced new plans to export their Nano. To markets such as Thailand, Sri Lanka and Bangladesh. And Tata will do that carefully. “We will go after these markets one after another,” Tata CEO Carl-Peter Forster told Bloomberg at an industry event in Bochum, Germany. Gone are bravado and hype. No more mentions to export the $3,000 car to Europe or god forbid the U.S.A. Read More >

Scotia Bank in Toronto has an insightful and resourceful car analyst, Carlos Gomes. Whatever he writes is worth reading. He expects car sales to rise and the “United States and the euro zone to climb out of their deep hole.” He also expects that the developed nations are ripe to be plucked and eaten by an upstart, roughhewn  crowd:

“In 2011, new car sales in China and the other BRIC nations (Brazil, Russia, India and China) will surpass the combined volumes of Western Europe and Japan, and account for roughly 30 per cent of global car sales.”

Here is his case: Read More >

With the second collapse of a Mahindra US-market initiative this year, some might believe that the Indian automaker has abandoned all efforts to make a good name for itself in the USA. And certainly, the implosion of its Pickup truck distribution deal with Global Vehicles looks difficult to salvage, given that both sides are locked in a legal dispute. Needless to say, when GV dropped us an email hyping a Spring 2011 launch for US-Market Mahindra products, we were more than a little skeptical. Now, however, the delay might have a legitimate explanation. According to Mahindra’s Arun Malhotra, senior vice-president for sales and customer care, speaking at the launch of the Mahindra Thar (see video above)

We are working on a lot of models. There will be a pick up on a completely new platform. We plan to bring it in the second [quarter] of 2011. It will be positioned near the top-end of our commercial vehicle pickup range, with a payload capability of above 1 tonne.

This seems to indicate that Mahindra is replacing its 1.2-ton Scorpio-based trucks (known in Australia as the “Pik Up”) with an all-new model before launching in the US. In other words, this is the first actual, legitimate reason for the endless delays to Mahindra’s US launch. Still, as the video of the Thar launch proves, Mahindra could probably make use of this (hopefully) final delay to work on their launch skills.

Back in May, when Mahindra took over the Indian EV city car firm REVA, we reckoned that the much-maligned (by Top Gear) G-Whiz would soon be sold from Mahindra’s dealer network, which was being developed by Global Motors. But with Mahindra’s deal to sell its diesel pickups through GV’s US dealer net in tatters, it seems that plans to sell REVAs in the US has hit a stumbling block. Syracuse, New York-based Bannon Automotive had made a $26.5m investment in local REVA production, an investment that was underscored by $7m in state grants and the promise of $52m in federal loans. Now Bannon is suing Mahindra, alleging that the Indian firm has broken its contract for US-based REVA production. Bannon reps tell syracuse.com

This material change in the representations made by Reva and Mahindra signaled the death of Bannon Automotive. Unfortunately, Mahindra/Reva did not deliver as promised. Accordingly, Bannon and its investors have been compelled to take legal action. Bannon will continue to try and follow through with the project as planned. We remain committed to bringing an affordable, U.S. manufactured electric vehicle to the American marketplace

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As far as total sales go, India is no China. 1.43 million units were sold on the subcontinent last year, a bit more than a tenth the cars the Chinese had consumed in the same year. But India is revving up quickly. Read More >

Tata is doing everything possible to revive the shriveled sales of the Nano. Sales of the ultra-lowpriced Nano recently crashed to ultralow levels: In November, only 509 units changed hands, reluctantly. The success of the much hyped diminutive conveyance more and more looks like a flash in the pan, literally. The Nano became infamous for going up on flames. Then, Tata had to raise the ultralow price a few times. On top of that, Nano buyers were seen as bad credit risks by Indian banks and were hit with ultrahigh interest rates. Stir, simmer, and you have a recipe for disaster. Now, Tata has decided to fight back. However, the counter-offensive appears less inspired compared to the enthusiasm when the car was launched. Read More >

On December 1, a B-sized sedan went on sale in India without a single car in the showroom. It is called the Etios, it is made by Toyota, and sight unseen, it already received 12,000 pre-orders as of today. Production of the Etios will start on December 20 in Toyota’s factory near Bangalore, India. Boring story so far?

While in Toyko for the rest of the year, I had a chance today to talk to Toyota’s lead engineer of the Etios, Yoshinori Noritake. And a much bigger story emerged: Toyota is engineering and building new cars, made for the special demands and targeted at the world’s new growth markets. Developed markets may not apply.

Noritake is a soft-spoken, humble man. Read More >

Typically when a major automotive manufacturer is preparing to spend a billion bucks on a new manufacturing facility we’ll see multiple reports on the investment. That’s why it’s strange to see only a single report, from rediff.com, on a new manufacturing plant in Punjab province that will reportedly be built by a US automotive firm. According to the report

A United States-based automobile company may set up a car manufacturing facility in Punjab with an expected investment of $1 billion, as audit and consultation firm Deloitte has made enquiries on behalf of the firm with the state government.

“There is some American company which has made enquiries and has shown interest (for setting up a manufacturing facility) here,” Punjab Industry Minister Manoranjan Kalia said on Friday.

Asked about the name of the automobile company that has evinced interest, Kalia said that the company’s name has not been disclosed.

However when contacted, a senior official of Punjab State Industries Department revealed that Deloitte has approached Punjab government on behalf of US-based automobile company  to look at the possibility of setting up a car facility.

State industry secretary S S Channy said Deloitte has indicated an investment of $1 billion for putting up a car facility and the company requires 750 acres of land for manufacturing facility and 150 acres for ancillary units.

The automaker in question probably isn’t Chrysler, as Fiat is leading that firm’s international efforts. It probably isn’t GM either, as The General has subordinated its Indian campaign to its Chinese partner SAIC. That leaves Ford, which has recently targeted India with its Figo small car, as the most likely builder of this plant. But does Ford work with Deloitte? Are there any other hints as to who this American investor is? Over to you, Best  Brightest…

TTAC has been keeping an eye on China’s near-monopoly on the rare earth compounds required to build hybrid and electric cars for some time now, and we’ve seen the materials become an increasingly controversial issue, culminating in this year’s diplomatic tiff between China and Japan. But, as Bertel has pointed out,

That the Chinese have a stranglehold on rare earth is not because they are the only ones who are are sitting on it. It’s due to laziness and lack of money.

Now, Toyota Tsusho (a partially-owned subsidiary of Toyota Motor Company), has announced plans to stop being lazy and spend money on a rare earth materials plant in the Indian state of Orissa. Tsusho says the factory should come online in 2012, and should produce 3,000-4,000 metric tons of the magnet-hardening materials. Meanwhile, Japanese firms aren’t limiting their search for rare earth materials to India. Bloomberg notes

The shortage in rare earths has brought delegations from Canada, Mongolia and Bolivia to Japan in the past two weeks as these countries promote themselves as alternative sources to China.