Mahindra and Mahindra Ltd (M&M), one of India's leading auto brands, has entered into a joint venture agreement with TMI Pacific, its existing partner and local Australian vehicle importer and distributor.
The agreement will lead to the formation of Mahindra Automotive Australia, a new company that will promote, market and retail Mahindra vehicles here.
The joint venture is dominated by Mahindra as 80 per cent shareholder, with TMI Pacific taking the remaining stake.
For bodyshop owners and workers, this will mean more new Indian cars on the Australian repair scene.
Mahindra as a whole continues to increase sales worldwide and despite many automakers suffering worldwide cutbacks and factory closures, the company still increased its gross revenues by 14.1 per cent.
Net profit after tax, but excluding exchange loses and exceptional and special items, grew by 9.3 per cent in the second quarter ending 30 September.
The Chairman of TMI Pacific and the Tynan Group of Companies, Michael Tynan, said that over the past 18 months TMI had successfully laid the foundation and carved a niche in the Australian landscape for the Mahindra range of utility vehicles.
"Working alongside Mahindra, we have built brand presence and believe that the stake that Mahindra is putting in Australian soil and the commitment they are showing, to becoming even more strongly involved in our market , is a testament to their belief in it.
"This affirmative action will provide even further confidence to the dealer network and to prospective customers."
Dr Pawan Goenka, president Automotive Sector, Mahindra and Mahindra Ltd said "the company was delighted to extend its relationship with TMI Pacific, which has contributed in large measure to the success of the Mahindra brand in Australia".
"As we merge to form a new entity our collective dedication will ensure the Mahindra brand will become further ingrained in the Australian market. We have a strong vision for international growth and this move is an integral part of that plan."
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Making hay… Michael Tynan, director of newly-formed Mahindra Automotive Australia, and Dr Goenka, president of Mahindra & Mahindra Automotive Sector, India with a Mahindra 'Pik-Up'.