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US distributor places factory orders for M&M pick-ups

Date: 01-10-2010

The long-running battle between US distributor Global Vehicles and Mahindra & Mahindra (M&M) got a new twist with the US distributor announcing that it has placed a $35-million factory order for the first batch of brawny, compact, clean-diesel pick-ups, even as the distributor is embroiled in a legal battle with the Indian automobile major. Mahindra TR20 and TR40 pick-up trucks will be delivered to dealers in the Southeast, followed by other regions over the next eight months.

Global Vehicles have not revealed price details, but says the pick-ups should sell for “substantially less” than their competition in the compact arena, which includes the Ford Ranger and the Toyota Tacoma. The vehicles are expected to retail for around $25,000. They will also carry a four-year/60,000-mile bumper-to-bumper warranty.

The US distributor believes annual sales could reach $1.4 billion in four years and first-year US sales for the Indian trucks could reach 30,000 units. M&M’s trucks have a combined city-highway fuel economy of close to 30 miles per gallon (MPG) which gives them a clear MPG edge over rivals.

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