With an emphasis on Paraguay and Peru, Mahindra & Mahindra Automotive is getting ready to bring back its well-liked pickups to South American markets. In an effort to expand on its prior success in the area, the corporation is attempting to resume sales in both nations. This action is taken in advance of the president of Paraguay’s anticipated trip to India in 2025, which is anticipated to strengthen the two countries’ bilateral commercial relations.
Brij Bansal, a representative of Mahindra & Mahindra, recently met with Yogeshwar Sangwan, the Indian Ambassador to Paraguay, to talk about the company’s ambitions. Despite the freight charges from India, Ambassador Sangwan told Financial Express Online that Bansal emphasized during the discussion that Mahindra’s pickups in Paraguay are 20% less expensive than models from rivals like Toyota and Ford. Because of its lower prices, Mahindra is able to compete in the Paraguayan market, while other well-known pickup brands are made locally in Argentina and Brazil.
However, there are several logistical obstacles to Mahindra’s reentry into the market. Presently, the business and the Reeder firm in Paraguay have a distribution agreement; nevertheless, things have not been going well lately. Mahindra is thinking about finding a new distribution partner entirely or collaborating with Reeder to resolve the problems.
Mahindra’s automobiles, especially its trucks, have already established a strong presence in Paraguay in spite of these obstacles. The nation is also home to distributors for other well-known Indian brands, including Bajaj motorbikes, Royal Enfield motorcycles, and Tata commercial vehicles, demonstrating the expanding regional market for Indian automobiles.
In addition to Paraguay, Mahindra is also targeting the Peruvian market, where India and Peru have been expanding their commercial ties at a rapid pace. In 2023, India and Peru’s bilateral trade was USD 3.12 billion, with the majority of India’s exports to Peru being medicines, motorbikes, and cars. The United Nations COMTRADE database on international commerce indicates that India exported US$6.41 million worth of motor cars to Peru in 2023 for the transportation of commodities. This month was the last time this data was updated.
In turn, Peru sells large quantities of copper and gold to India. A trade deal between the two nations is anticipated to be concluded in 2025, further solidifying their economic connections. With strategic strategies in place and a solid pricing advantage, Mahindra & Mahindra is well-positioned to successfully return to the South American market.
