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M&M targets 20 percent overseas sales for Xylo
By siliconindia
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Tuesday, 30 December 2008, 21:43 IST |
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Kolkata: Utility vehicle major Mahindra and Mahindra (M&M) seems to be optimistic about next year's target, when most of the companies expect a decline in the sales during the period due to the global slowdown. The company is targeting 20 percent of sales from overseas markets for its new Xylo that is slated for launch on January 12, 2009, reported Business Standard.
Putting faith on next year, the company would also make three launches during the year. Moreover, an all-new sports utility vehicle (SUV) platform would be introduced in the mid-2010. "We will launch this yet-to-be-named SUV first in India and we plan to take it to the U.S. market later," said Pawan Goenka, President, Automotive Sector, M&M.
M&M is planning to export its first left-hand drive version of the Xylo which would be launched in a year to countries like Chile, countries of West Asia, and some of the African countries including Egypt. However, Goenka mentioned that the Xylo has not yet designed for the U.S.
The company's new SUV model would be launched in the U.S. in 2010, which would be M&M's second launch in the U.S. market after the Scorpio, which is expected to enter the U.S. market by the end of 2009. "The downturn is perhaps one of the best times to launch new products as it creates a buzz around it. The current slowdown in the global economy will not deter our launches," mentioned Goenka.
Presently, M&M enjoys 54 percent market share in the utility vehicles market including the pick ups, while in the pick-up segment alone the company has a share of 80 percent. However, the company's sales were down by 22 percent during October and November and its operating profits were down by 150 basis points in the first six months. According to Goenka, this is largely because of the rise in input costs in this period. "The impact has been felt in the second quarter, while the third quarter will suffer from sluggish sales figures," he added.