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Journalism of Courage
MUMBAI, AUG 27: Mahindra and Mahindra Mamp;M and Mitsubishi are likely to separate ways following the latter8217;s plans to enter the multi-utility vehicle segment. Mamp;M is currently manufacturing Mitsubishi8217;s 10-seater Voyager which has not received good response in the Indian automobile market.
Now Mitsubishi8217;s Pajero will directly compete with Mamp;M8217;s Project Scorpio codename for MUV project in which the Indian company has made a huge investment. Mamp;M even sold off its stake in Mahindra Ford India Ltd to Ford to generate funds for the Scorpio.
In a statement, Mamp;M said it has not made any proposal to Mitsubishi to make Pajero in India. 8220;All the royalty payment with regard to Voyager are being made as scheduled to Mitsubishi,8221; Mamp;M and Mitsubishi jointly said in a statement.
Though both company say that they intend to work together to make Voyager a success, the Voyager8217;s steep price of Rs 5.66 lakh is discouraging users to buy. 8220;Unless, there is a major price cut, Voyager8217;s production is likely to stop,8221; Mamp;M insiders said.
The multi-utility vehicle segment will witness hectic activity in January when Japanese automobile giant, Toyota will unveil its model for India. With Tata Safari 8211; popularly known as Pajero-clone 8211; already available in the premium segment of MUV segment, consumers will have choice of over four different vehicles.
For Mamp;M, this would be the third relationship which is on the rocks. Earlier, the Mumbai-based utility and tractor maker broke up with Chrysler and stopped using Jeep brand name and followed up by disinvesting in its joint venture with Ford Motors.
