The IDF is testing the first off-road vehicle produced by India's Mahindra & Mahindra Ltd. (BSE: 500520), the Scorpio. The Scorpio is a fairly modern vehicle with a turbo diesel engine that was developed in Europe and complies with the updated EU standards.
The Scorpio has a manual gearbox, but the model that will be sold in Israel will have an automatic gearbox made by General Motors Company (NYSE: GM), which is still under development. The Scorpio's main advantage is its price: the model that will be sold in Israel will cost only $7,000.
Elul Group Ltd. represents Mahindra's defense division in Israel. Elul does not market vehicles, but will reportedly arrange regular imports and will seek a franchisee from Israel's vehicle market to sell the car.
Mahindra & Mahindra is one of India's largest conglomerates. Other units of the company, especially high-tech subsidiaries, are also represented in Israel. If Mahindra decides to market the Scorpio in Israel, it will be the cheapest diesel automatic off-road vehicle in the Israeli market, and will probably be classified in use value category 2 or 3.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2008
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