Proton-Mahindra May Have a Joint Venture

Friday 18 June 2010, 00:00 AM by Payal Pathak

Mahindra and Mahindra and Malaysian auto giant Proton were in talks with each other in 2007. Proton wanted to enter the Indian market in 2007 but the discussions were not fruitful. Both the companies are understood to be in talks again for Proton to make an entry in India. Mahindra’s official spokesperson declined to comment on speculations but sources close to development report that this year there is a possibility of a partnership.

On the other hand, Proton’s annual report officially states its plans to explore markets in China and India. "Moving forward, the group (Proton) will also focus on high-growth regional markets in ASEAN for the completely built-up (CBU) market, as well as China, India and Iran for the completely knocked-down (CKD) market," said the annual report. Proton also perceives Indian economy more robust as it was more resilient towards the economic fallout.

Mahindra is already exploring new markets and is expanding quickly. It has recently ended its alliance with Renault to re-launch its Logan model under its own umbrella. It has also acquired more than 50 percent stake in Reva Electric to produce electric models for the future market. It is already ready to introduce the new Scorpio model in the US market and will be the first Indian auto maker to land on the American shores.

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