AUBURN HILLS, Mich.:"Warning: Don't do anything stupid!" reads the sign to the right of Rick Haas' office computer.
Haas, the automaker's North American chief executive, says this time Mahindra has a more cautious"pay-as-you-go strategy." Instead of starting with a truck or passenger car, Mahindra is reintroducing its brand with the Roxor, a vehicle that looks like a vintage Jeep.
Analysts and auto executives say new entrants must stand out in a crowd to crack the U.S. market, as Tesla Inc has with electric vehicles. The problem for prospective entrants is that if they do find an untapped niche, consultants and analysts expect other automakers to rush to fill it themselves.Mahindra's first foray into the U.S. auto market was a disaster, as plans to launch a low-cost pickup with high fuel efficiency never came to fruition, in part because it failed to meet federal emissions standards. Angry dealers who had signed on to sell the Scorpio pickup sued Mahindra.
The Roxor stands out because it looks like a World War II Jeep. Mahindra has had a license since the end of that war to make such vehicles in India. Municipalities, mining and construction companies, and many others seeking rugged off-road vehicles have shown interest, Haas said. Mahindra has signed up a network of 390 powersports dealers all over the country to sell the Roxor. Haas said around a third of powersports dealers also own car dealerships so the Roxor allows him to establish the brand, then build relationships with car dealers.