Mahindra South Africa titled as fastest growing automotive company of region

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(added few years ago!)

In terms of sales, Mahindra South Africa, the completely owned South African subsidiary of Mahindra and Mahindra has been declared as the fastest growing automotive brand of the country. The car maker marked this achievement in passenger car and Light Commercial Vehicle (LCV) segment in the first five months of 2012. Among these two segments, MSA grew 124 per cent with sales of 1,563 units from 699 units sold in same period last year. The second place went to Jaguar, which reported a growth of 94 per cent. These figures have been revealed by the automotive market intelligence company, RGT Smart.

MSA reported the highest growth rate in passenger vehicles segment at 245 per cent with 628 units sold during the period from 180 units in corresponding tenure last year. In light commercial vehicle segment, it was the third fastest growing auto maker with 84 per cent surge as the sales volume increased to 935 units from 517 units recorded in first five months of 2011.

Ashok Thakur, Chief Executive, MSA expressed that the reports of Mahindra’s South African division are very encouraging. He further said, “We are now seeing the fruits of a comprehensive and successful turnaround strategy that put the company in a strong position for growth after the economic woes of 2008/09.”

The company founded in 2004 has been consistently performing well since it was established. However, MSA faced a major low after countering several negative factors during the turbulent period. These factors included the imposition of the National Credit Act, increasing competition in the market, unfavourable fluctuations in exchange rate and the beginning of the global economic meltdown.

A major capital investment from Mahindra and Mahindra Limited (M&M) to buy the remaining 49 per cent stake from the African stakeholders turned the tide in favour of MSA. This move by the parent company made MSA a wholly-owned subsidiary of the Indian automotive giant. M&M further invested in the operating capital as well and revamped the management team of MSA.

As per Thakur, the launch of new Sports Utility Vehicle (SUV) Mahindra XUV 500 and Genio, a pick-up vehicle, with special editions of existing model, enhanced the brand’s presence. The dealer network was also improved by the car maker to ensure consistent supply of components and enhanced level of servicing. At present, the car maker has appointed 56 dealers wherein 53 are already operating. 15 among these dealers were selected by the company from January-till-date. M&M has pinpointed future locations as well for its new outlets and is seeking dealers for those areas.

Thakur said, “Brand building, using an adaptation of Mahindra & Mahindra's international campaign, which is based on the slogan of 'Rise', is an area of renewed activity which is already showing benefits.”

Mahindra is also a part of the project which aims at increasing its presence in Africa. As of now, car maker has expanded its network in Botswana, Zimbabwe, Zambia and Swaziland and also has plans to foray into SADC region. M&M is targeting at a two-fold sales volume in the course of 2012, considering portfolio expansion, aggressive pricing and value added offers.

Thakur stated, “We are aware that this is a faster growth rate than the average for the industry, but are confident of being able to achieve these sales. Some of our dealers are already recording sales that give them more than 20 per cent market share in their area of responsibility.”

Tags : Mahindra, South Africa, sales, Light Commercial Vehicle, LCV, 2012, MSA, Jaguar, RGT Smart, Ashok Thakur, 2011, 2004, Sports Utility Vehicle, XUV 500, Genio, National Credit Act, Botswana, Zimbabwe, Zambia, Swaziland, SADC

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(added few years ago!) / 1610 views
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