Export of Mahindra branded vehicles to Russia in 2yrs: Goenka
New Delhi: Auto major Mahindra & Mahindra plans to start selling its branded vehicles in Russia within two years as it looks to make the country an important export destination, according to a top company official.
"We are working on the Russian market for our vehicles to export from here. This may not happen immediately. It will take one and half to two years from now," Mahindra & Mahindra (M&M) President (Automotive and Farm Equipment Sectors) Pawan Goenka told analysts in a conference call last week.
The Russian market will be a big market for the company in the future, he added.
Currently, M&M's subsidiary SsangYong Motor has CKD operations in Russia for one model.
Goenka had earlier said during the Auto Expo this year that the company was looking to increase the "local production from Russia".
By the end of next year, the company would add more models to its CKD line-ups there, he had said.
The company's auto segment saw exports grow by 37 percent during April-June quarter this fiscal on account of robust demand from markets like South Africa, Chile, Brazil, Sri Lanka, Nepal and Australia, Goenka said.
M&M had sold 7,841 units in overseas markets in the first quarter compared to 5,717 units in the same period last year.
On M&M's tractor exports, Goenka said the segment witnessed an increase of only four percent due to slowdown in demand in Bangladesh in the last quarter.
Driven by robust sales in the automotive segment, M&M had reported 25.90 percent increase in its consolidated net profit at Rs 778.47 crore for the quarter ended June 30, 2012. It had posted consolidated net profit of Rs 618.31 crore in the same quarter last fiscal.
During the quarter under review, gross sales stood at Rs 9,937.70 crore as against Rs 7,345.04 crore in the same period last fiscal, up 35.30 percent.