Indian Automaker Plans to Enter the U.S. in 2009

Washington DC August 13, 2007; The AIADA newsletter reported that chicken tax or no chicken tax, Indian carmaker Mahindra & Mahindra plans to sell pickups in the United States starting in early 2009 - and will price them as low as any pickups now on the market.

The 25 percent U.S. tariff on imported pickups - commonly called the "chicken tax" - would be a bitter pill to swallow for a company that will compete on price in the compact segment. But the tax won't keep Mahindra out, said Pawan Goenka, president of Mahindra's automotive sector.

They plan to sell 5 models derived from the Scorpio compact SUV - a 2-door pickup, two 4-door pickups and two 5-door SUVs, which Global Vehicles USA, Alpharetta, Georgia will distribute.

According to Automotive News, Goenka has 237 dealers signed up with a goal of 300 by early 2008. Global Vehicles is asking dealers to commit $125,000 to apply for a franchise. Mahindra is entering the U.S. market for several reasons one being the image boost it gives the company elsewhere in the world, but at this point Goenka would not forecast Mahindra's U.S. sales volume.