Mahindra ceased production in Brazil

 

Mahindra-Scorpio M Mahindra Indian origin automotive news again this week, after knowing their intentions to acquire the Italian firm Pininfarina . But this time it’s bad news, since have ceased their activities in Brazil after seven years .

After several unsuccessful attempts to try to increase the low sales their SUVs and pickups in Brazil, importer and manufacturer Mahindra Bramont closed its assembly line in Manaus, the capital Amazonas state. In seven years only managed to sell less than 4000 units despite having a production capacity of 5000 vehicles per year.

sounds strange that a plant closing its doors in Brazil, accustomed to news for years reported on investment for the installation of new plants or the adequacy of existing to increase production or add new models. But for Mahindra, nothing went well in Brazil and everything was aggravated even more with sharp drop local market and sudden devaluation Brazilian currency.

Mahindra had a somewhat complicated logistics in Brazil with process extremely long and slow assembly . The body parts came in format knocked down from India Pouso Alegre , in the state of Minas Gerais, where they were welded and painted. Then the body was sent to Manaus, where the engine, transmission and axles were mounted before leaving for Uberlândia , a municipality in Minas Gerais, for final distribution.

This complicated logistics entailed high expensive and very inefficient , which added to it was technically outdated vehicles, combined to greatly complicate forecasts that had the firm. Mahindra joining in Brazil Scorpio pick-up double cab 4 × 4 and MOV Jeep latter launched in September last year.

However Bramont said that the brand will not leave Brazil as a whole, because it has a tractor factory in Dois Irmãos , a city in southern Brazil, whose production is maintained in a normal situation. Mahindra-Bramont has retained its membership Anfavea entity in Brazil gathers automakers although even a drive was recognized in the statistics of production and sales of this organism in recent months.

 
   

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