Mahindra stalls pick-up truck development project intended for U.S market

India’s leading utility vehicle maker, Mahindra & Mahindra Ltd. has stalled the pick-up truck development project initiated for exclusively for the U.S market owing to the market situation persisting in the nation. Moreover, another factor hindering the project commencement is the legal dispute followed by the company’s failure in securing the certification.

In 2006, the automaker had embarked upon the development of pick-up truck based on its flagship SUV, Mahindra Scorpio with an infusion of about $100 million. For the U.S market, the company supplies commercial vehicles such as tractors but passengers vehicles are not yet streamlined.

The company stated in the last month that it is not handy with the certification of vehicles restricting their entry in the U.S market but the details for such failure was kept undisclosed.

In a statement released by the company, recently, it was mentioned that Mahindra had decided to hold back the project due to changes in the U.S regulatory and market situation. However, the company will constantly keep a check on the U.S market conditions and will remain flexible with its dealings for the nation.

Earlier, Mahindra & Mahindra was entangled in a dispute raised by an U.S based distributor; Global Vehicles with whom the company had agreed for launch of the Scorpio based pick-up truck in the country. The dispute was, however resolved by an international arbitration panel passing the decision in the automaker’s favour.

The most recent dispute raised by American dealers alleged that the company intentionally delayed certification of its vehicles, while the company has denied any such claims.

Industry analysts are suggesting the automaker to introduce passenger vehicles in alliance with its South Korean subsidiary, Ssangyong in the U.S market instead of proceeding with commercial vehicles only.