Homegrown auto major Mahindra & Mahindra today said it will take a decision regarding a foray into the Russian market within the next six months but launch of the Mahindra branded vehicle will happen after the two years.
“In the next six months, we will take a decision but the launch of vehicle will happen after two years,” Mahindra & Mahindra (M&M) President (Automotive and Farm Equipment Sectors) Pawan Goenka told PTI when asked about the company’s Russian foray.
Speaking on the sidelines of the annual convention of Society of Indian Automobile Manufacturers (SIAM), he said at present the company is under discussions to start Russian operations and has been talking to various distributors.
“We are studying the market as to whether we should start with a manufacturing facility or by selling the vehicles as CBU (completely built unit) imports,” Goenka added.
M&M’s subsidiary SsangYong Motor has an assembly operation at present for completely knocked down (CKD) units in Russia for one model and the company plans to add more models to the line-up there by the end of next year.
Asked about possible price hikes of its products, Goenka said: “We are constantly evaluating it as margins are always under pressure. Prices will obviously go up, however, the quantum of increase will be less this time as the commodity price hike has been modest.”
Commenting on the XUV 500 model, he said the company has pending order of 15,000 units which would be cleared by November.
The company will also be launching its compact multi-purpose vehicle Quanto on September 20, he added.
On tractor sales, Goenka said August was disappointing but with monsoon deficiency down to just 12 per cent now the company is hoping for sales to pick up during the festive season.