Mahindra Navistar Given 3 Years to Show Profits

Mahindra Navistar Automotive Ltd. has been in the market for more than 2 years now and has so far accumulated total losses of Rs. 692 Crore. The board of Mahindra & Mahindra has given the truck subsidiary three more years to start showing some profits, since its US JV partner quit the table and sold off its stake for Rs. 175 Crore. The company has so far managed to sell more than 6,000 units of its products.

Published On Dec 21, 2012 11:28 IST

Published OnDec 21, 2012 11:28 IST

Last Updated OnDec 21, 2012 11:28 IST

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Not to be deterred, M&M says it is still committed to the venture and will invest 200-300 Crore more in the venture. Pawan Goenka, president, automotive & farm equipment sector, on Thursday said: "The board has given us three years to turn around the business. We will not be buying back the stake, if it did not make sense. We are doing everything we can to reduce losses. We have learnt that it is difficult to sell a truck versus a car. Here the customer needs to be convinced and one has to get into micro marketing. And in a slowing market, it is difficult to convert customers from the leaders, who are currently offering big discounts."

Source - ET

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Wajeeh

Raised in the Middle East, Wajeeh Khan spent most of his life in Doha, Qatar where he was originally educated in the field of communications and networking. He spent five years working and garnering experience in various fields including administration, insurance, sales and construction. However, Wajeeh has always had a deep seated passion for automotive writing, which has brought him back to his roots in India and although a fresher in the field, he is an obsessive enthusiast with an extreme and inquisitive nature and has his bases on the hows and whys of the functioning of a car, all covered. Armed with exceptional knowledge on the workings of the English language and his obsession for cars, he hopes to make a name for himself in the field of automotive journalism. Read more