| MUMBAI, July 11
MUMBAI, July 11 India's Mahindra & Mahindra
has halted development work on a pickup truck aimed at
the U.S. market, the company said, following legal disputes and
failure to win needed certification.
India's largest utility vehicle maker, which sells tractors
in the United States but not passenger vehicles, h ad been
working on the development of a pickup truck version of its
popular Scorpio utility vehicle since 2006, spending about $100
But the company said those plans are now scrapped.
Mahindra "recently decided not to proceed further with the
project due to changes in the U.S. regulatory and market
situation," the company said in a statement on Tuesday.
"M&M will continue to monitor the U.S. situation and remain
flexible with its approach to this market."
Last month, the company said it had not obtained the
necessary certification to enter the U.S. market with the
vehicle, but did not give specifics.
The company had also been involved in a dispute with
distributor Global Vehicles, with which it had agreed to launch
the Scorpio version in the U.S. market. But earlier this year,
an international arbitration panel ruled in favour of the Indian
automaker, the flagship company of the $15.4 billion Mahindra
The company faces a more recent lawsuit filed by American
dealers, who allege "intentionally delayed certification of its
vehicles." Mahindra has refuted their claims.
One analyst said Mahindra may look instead to enter the U.S.
passenger car market through its South Korean unit Ssangyong
"I will not say this is a major setback because Ssangyong
option is open and they might have some other plan in mind,"
said Umesh Karne, an analyst with BRICS Securities.
The company's shares ended down 0.4 percent on Wednesday at
730.55 rupees in a Mumbai market that closed 0.73