Latest Car News in India

Thursday, June 07, 2012

By Shilpa Chopra

Mahindra’s US plans get a setback

Indian SUV maker had received a jolt in making its SUV Mahindra XUV 500 as a world SUV recently. Alleging fraud and fake promises, some automobile dealers in the US have moved the court against India’s leading SUV manufacturer, Mahindra & Mahindra Ltd. (M&M). The legal firm of Diaz and Targ filed a suit on June 4, 2012 in the district court of Atlanta in Georgia against M&M. The legal firm alleged that M&M has duped more than $60 million of the US auto dealers. This is expected to give a severe blow to Mahindra’s expansion plans in the US.

Mahindra XUV 500 Pictures

See More Mahindra XUV 500 Photos Get Mahindra XUV 500 Price


The legal firm had imposed severe charges on M&M and has said that the Indian firm has made the US auto dealers to invest and promote Mahindra’s brand and had made false promises. The firm alleged that M&M giving such promises had built its dealer network in US since 2004. The Mahindra dealers in US consequently also invested a huge sum in erecting showrooms and also deposited the dealership fees to the Indian car maker. But M&M kept on delaying getting certification for its cars to be pitched in US and thus there were no actual delivery of Mahindra cars in US leading to the loss borne by the US dealers. Meanwhile, Mahindra has denied the charges and has said that it had not duped its US dealers.

Mahindra XUV 500 Pictures

See More Mahindra XUV 500 Photos Get Mahindra XUV 500 Price


Meanwhile, these allegations seem to delay Mahindra vision of expanding its network of cars in US. Most probably the car maker would have been in the process of pitching in XUV 500 SUV besides Mahindra Verito car and Mahindra Scorpio SUV in US. Notably Mahindra tractors are already in sale in US and are some of the cheapest and best liked tractors. Furthermore, earlier as well some dealers have sued Mahindra but the local court found the car maker innocent.

Comments (2)

rs0493047@gmail.com

Rahul

Thursday, June 07, 2012

Mahindra has done well for the Indian premium SUV car enthusiasts.

anshugupta307@yahoo.com

Anshu Gupta

Friday, June 15, 2012

Mahindra XUV 500 side view and front view is so nice and attractive than other SUV...

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