Mahindra Seeking Alliances With Global Players

Despite its struggles in its native market — and, perhaps, because of said struggles — Mahindra & Mahindra is seeking to build alliances with a trio of automakers to develop its global presence.

The Economic Times reports M&M is joining up with its South Korean brand Ssangyong Motor in their entries into Russia and China as part of a “coordinated global branding strategy” between the parent company’s two brands. The United States — where Mahindra has had a difficult time selling more than tractors — and Europe — where Ssangyong lost some of its footing prior to M&M’s purchase in 2011 — are also on the radar.

Speaking of Europe, M&M is in alliance talks with both PSA Peugeot Citroën and SAAB AB as far as branding and technology-sharing are concerned. Regarding the former, Mahindra is interested in PSA’s diesel- and compressed air-hybrid technology, with the aim of jumping “into the future generation,” according to French analyst Gautam Sen. In turn, PSA could piggyback on Mahindra into the Indian market it had abandoned in the 1990s. The company attempted to return in 2011 by breaking ground on a new factory in Sanand, only to be undermined by financial difficulties.

As for SAAB, Sen says Mahindra would like to acquire the Saab brand and resurrect it as another way to enter markets in Europe and the U.S. The strategy would involve rebranding and redesigning Mahindra and Ssangyong products into Saabs, but only if “quality and design can come up to the expectations of the typically discerning Saab enthusiast.” That said, he adds that relaunching the Saab brand would be easier said than done, as both Spyker and National Electric Vehicle Sweden can attest.