Mahindra Grp hopes to grow sales in S Africa car mkt by 50%
Port Elizabeth: The Mahindra Group is expecting to grow sales in South African passenger car market by 50 percent this year and is also betting big on other businesses such as IT in the country, S P Shukla, Chief Brand Officer of the company said on Tuesday.
Last year, the South African passenger car market had grown by 9 percent, whereas Mahindra's sales volume in this segment shot up by 66 percent.
"This year, we are looking to increase our sales by a further 50 percent on the figure for 2012 in a climate where the prediction is that the total South African vehicle market will grow by only 7 percent," Shukla told PTI on the sidelines of the annual Emerging Markets Conference Board, where he was a speaker.
In South Africa, the lead business for Mahindra is automotive, with its vehicles having been sold locally since 2004. The Group has set its sights firmly on the African continent as part of its growth plans.
"Mahindra has had a long and enduring relationship with the African continent and its people. With a population of a billion people and a combined annual GDP of USD 2 trillion, it is a very strategic market for us," Shukla said.
"With 56 countries - some of which have the highest economic growth rates in the world - the continent presents immense opportunity for business," Shukla added.
He said that the establishment of a dedicated Africa desk by Mahindra in the last couple of years had provided added impetus to grow its businesses on the African continent.
Shukla highlighted how the strategy of tying up with existing businesses in some cases had made Mahindra's entry into new markets quicker and easier.
Mahindra group is currently operating in 30 African countries with the automotive side of the enterprise doing brisk business in 25 of them.
The information technology wing of Mahindra is active in 20 countries on the continent and the generators business is already established in 12 countries.