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EXECUTIVE SUMMARY/OVERVIEW: Mahindra & Mahindra (M&M), an Indian multinational automotive manufacturing corporation headquartered in Mumbai, Maharashtra, is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. Founded in 1945, it is a part of the Mahindra Group and it currently produces Sport Utility Vehicles, Multi Utility Vehicles , pickups, lightweight commercial vehicles, heavyweight commercial vehicles, two wheeled motorcycles and tractors under the “Mahindra” brand name. It was ranked 17th on a list of top companies in India by Fortune India 500 in 2018. Its major competitors in the Indian market include Maruti Suzuki, Tata Motors & Hyundai Motors. M&M has a global presence and its products are exported to several countries. It has subsidiaries in Italy, US, South Korea, China, Australia, Brazil & Mexico. It is one of the top auto majors in a highly dynamic market like India and now M&M wants to venture into the Canadian Automobile Market, one of the world’s top producers of light vehicles. M&M is taking on this challenge by launching it’s iconic, legendary and the ultimate DNA Carrier, THAR. Canada is part of M&M’s ambitious market development plan and is very enthusiastic about it. This marketing plan will give an insight into the strategy, target customers, target market which M&M is planning to capture in Canada with the THAR.

M&M PRODUCT MIX: M&M have been taking care of the 4s – Product, Price, Promotion & Place quite seriously. With regards to Products, M&M has wild spread itself in various categories of automobiles. They have a huge product mix with product lines of personal vehicles, commercial vehicles, electric vehicles, application trucks, trucks, light trucks and buses. Under personal cars they have covered themselves from utility vehicles to sedans. They are also trying to be an environment conscious company and have already started working on E2o cars & eSupro vans in India. While talking about the pricing of M&M Vehicles, they have targeted different market segments with various ranges of vehicles. They have vehicles covered for the middle class majorly and the pricing is decided keeping their competitors in mind. M&M distribution strategy has been one that needs to be highlighted as they already have over 300 dealers spread across 240 cities and almost 1300 up-country outlets have been set up in rural as well as semi-urban areas in India They have always advertised themselves smartly and adequately. They had a campaign named, ‘Live young, live free’ which had gone viral and it spoke about how their vehicles can be useful in tough terrains too. They not only collaborate with celebrities but also host on ground events by organizing multi city road shows in India.

HISTORY OF THE THAR: The story of the Thar can be traced back to 1947 with M&M commencing the import of the Willys Jeep that had been widely used in World War II. Soon thereafter In 1948, M&M started assembling, under licence, of the Willys Jeep in India and was established as the Jeep manufacturer in India. Decades of Jeep assembling and later manufacturing experience coupled with a mammoth cognizance in tractor designing and manufacturing gave birth to the Mahindra Thar, a compact, four-wheel drive, off-road Jeep CJ-like SUV. The vehicle was launched in the Indian market on October 4, 2010. Named after the huge Thar desert of India, the iconic Thar has been an object of desire for off-road enthusiasts from the very beginning with unmatched off-road capabilities, durability & robustness. The second-generation Thar was unveiled on August 15, 2020 in India with a notch higher in its appeal, owing to its ability to be as comfortable on paved roads, as it has always been off-road.

INSPIRATION & INTRODUCTION IN THE CANADIAN MARKET: Mahindra Thar will be launched in Canada following the footsteps of the “Roxor”, a variant of the Thar, that Mahindra Automotive North America, Michigan had unveiled for United States market. Roxor has got very positive reviews from the US market and is a huge success in the farming community who use it to get across a ranch or to

go hunting in retro style. The Roxor is not street legal and is positioned as a side-by-side off-road vehicle with a top speed of 45 mph and is sold in Canada only through the US dealership. Confident from the success of the US market, the all-new 2nd generation THAR, a proper street legal vehicle for both urban regular and off-road customers will be launched in Canada supported by a network of exclusive showrooms and service centres.

PRODUCT OFFERING: Like India, THAR will be offered in Canada with two engine options, a 2.0-litre petrol and a 2.2-litre diesel. Both are offered with a choice of 6-speed automatic transmission or 6-speed manual transmission. Customers have the option to choose between a hard top, soft top or soft top with convertible like folding down mechanism. Detailed below are the key technical specification of a Diesel, Manual Transmission THAR. The complete technical specification of all the variants are available in M&M website. MAHINDRA THAR-MANUAL/DIESEL Engine Type Displacement (cc) Max Power Max Torque No. of cylinder Valves Per Cylinder Valve Configuration

: : : : : : :

mHawk 130 Engine 2184 130bhp@3750rpm 300nm@1600-2800rpm 4 4 DOHC

Fuel Supply System Compression Ratio Turbo Charger Transmission Type Gear Box Drive Type Fuel Type Mileage (ARAI) Fuel Tank Capacity (Litres)

: : : : : : : : :

Front Suspension

:

Rear Suspension Steering Type Steering Column Steering Gear Type Turning Radius (Metres) Front Brake Type Rear Brake Type Length (mm) Width (mm) Height (mm) Seating Capacity Ground Clearance Unladen (mm)

: : : : : : : : : : : :

Direct Engine 9.5:1 Yes Manual 6 Speed 4X4 Diesel 15.2 57 Independent Double Wishbone Front Suspension with Coil Over Damper & Stabiliser Bar Multilink Solid Rear Axle with Coil Over Damper & Stabiliser Bar Power Tilt Rack & Pinion 5.25m Disc Drum 3985 1820 1844 4 219

Wheel Base (mm) Front Tread (mm) Rear Tread (mm) No of Doors

: : : :

2450 1520 1520 3

PRODUCTION & DISTRIBUTION:

M&M would launch the Canadian subsidiary, though the legal structure has not yet been finalized. Then it plans to set up an Assembly factory in a coastline city near to a port for assembly of the Thar initially. The preferred location would most likely be in Halifax, Nova Scotia due to the availability of a port and it being on the Atlantic Ocean, is closer to India by sea route. Till the time the factory is set up, the car will be imported by M&M Canada as a CBU Unit. However, post set up, Thar will be sent as CKD units from India to Canada where the same will be assembled and sold. Thereafter there are plans to bring in SKD units from India with local sourcing of around 40% from Canada and assembled in that facility. The performance would be monitored closely and when the need arises, the assembly facility may be extended to a full-fledged manufacturing facility. M&M will soon start inviting EOI (Expression of Interest) from new dealers / existing multi brand dealers / powersport dealers and Mahindra Farm Equipment dealers for exclusive dealership for Mahindra Personal Vehicles under whose umbrella the THAR would be sold. This distribution arrangement once established will be utilized for future launch of other personal vehicles and gradually Mahindra Commercial Vehicles which includes bus, trucks, pick-ups etc. M&M’s initial goal is to focus on exclusive dealerships in the following Canadian Provinces: Ontario, Quebec, British Columbia: These are the top 4 most populous provinces. To tap the urban riders and huge young immigrant population. Alberta &Manitoba: To tap the farming community. The community is conversant already about M&M’s farming equipments.

MARKET OVERVIEW & COMPETITION: Canadian automobile industry is located in the heart of the largest automobile manufacturing region of North America: The Great Lakes automotive manufacturing cluster. This is one of Canada’s biggest manufacturing sectors contributing around $ 19 billion to the GDP. This sector provides direct employment to more than 125,000 people, with a further 400,000 people in aftermarket services and dealership networks . Canada holds the position of the ninth largest auto producing nation worldwide, and fourth largest auto exporter by value. In 2016, Canada produced 2.4 million vehicles and exported $48.8 billion worth of vehicles. However, it is unfortunate, that Canada could not make a mark with its home grown auto companies. As on date, there exists a few small but unique and indigenous auto companies catering to niche markets namely Prevost, a tour bus and motor homes manufacturing company; Campagna Corporation making their T-Rex rr, track ready 3 wheeled car; Conquest Vehicles making the Knight XV, a bullet proof, uber luxury SUV customized for each customer and Felino manufacturing their CD 7 supercars. The Canadian automotive industry of Canada consists mainly of assembly plants of foreign auto manufacturers. Since the THAR would be predominantly placed in the small-mid size SUV segment, we would discuss about the compact SUV segment here. This segment has been the torch bearer when it comes to the most popular segment in Canada. This is due to the practicality, versatility and affordability this segment offers to Buyers. Every manufacturer now has a compact SUV in their offering. So, the next thing that comes naturally to our mind is why SUVs? The answer is quite simple. Although the SUV proportion in Canada are much higher compared to other segments than many European countries or US states, it doesn’t imply that Canadians expect more sport from their vehicle and hence SUV. It is simply because the Canadian weather conditions expects more versatility from the vehicles,

mostly tackling the snow. This task can be catered by the SUV segment only. As such SUVs are popular in countryside, suburbs and even main urban areas and they perform outstandingly. There is a prevalent big size SUV market in Canada and again there is a small size SUV market in Canada. Although these segments are all equipped with 4x4 for snow tackling, the primary focus is mainly style, luxury & comfort. Off roading is not a priority. This is not exactly THAR’s target competition. THAR is an exceptionally well performing off road vehicle and has got extremely high rideability in snow. The new THAR has been designed with off roading as a top priority but it’s final aim is not to target off road fans only. The new THAR has been redesigned with cozier & luxurious interiors, embedded with the latest technology and it even comes with a fully automatic transmission, with the intention to intrigue all those who want the features of a SUV. Some of the compliments which the new THAR have got from the fan base are “supremely comfortable”, “surprisingly practical”, “impressively hi-tech”, “reassuringly secured and still quintessentially Thar”. So, the THAR’s off-road capabilities with modest luxury at an affordable price is unmatched and it’s main USP. M&M Thar will create a new segment altogether. . Detailed below are some figures to give an idea of the SUV market, particularly the compact SUV market: All new Vehicle Sales (Nos.) in 2020: JAN 112,72 2

FEB 133,23 0

MAR 82,64 9

APR 51,33 2

MAY 119,34 0

JUN 134,90 6

JUL 172,06 5

AUG 161,33 3

SEP 168,71 1

OCT 163,39 4

NOV 132,71 1

DEC 224,38 2

TOTAL 847,26 8

All new SUV Sales (All Models-All Types) (Nos.) in 2020: JAN 54,39 0

FEB 62,48 2

MAR 38,64 0

APR 23,30 8

MAY 55,12 5

JUN 63,14 4

JUL 86,34 0

AUG 81,89 5

SEP 85,05 9

OCT 90,63 6

NOV 74,48 1

DEC 131,76 8

JUN 33,84 5

JUL 48,54 3

AUG 47,70 6

SEP 48,24 1

OCT 52,80 2

NOV 43,42 3

DEC 84,06 8

All new Small SUV Sales (Nos.) in 2020: JAN 29,73 3

FEB 33,11 0

MAR 20,50 2

APR 12,10 3

MAY 29,27 5

TOTAL 483,351

So, if we analyze the figures below, the total SUV sales is around 51% of total vehicle sales of all segments. Out of total SUV sales of all types, the small SUV sales comprised of 57%. Other SUV types include Big Luxury, Mid-Size Luxury, Mid-Size &Small Luxury. In the small SUV market, a typical front-wheel-drive model starts from mid-$20,000 and all-wheel-drive are usually around $30,000. So, the overall sales revenue of compact SUV segment considering all wheel drive option is 483,351 X 30,000 $ is equal to 14,500,530,000 $ = 14.5 Billion$ THAR’s target is to capture a percentage of this revenue. Price of a THAR in India varies from INR 10-13 Lakhs which is equivalent to 20,000-23,000 $. M&M will make all efforts to keep the price offering in Canada in this range only, though the CBU transportation charges and the applicable taxes are considerable. With progress of the production plan as elaborated above, the prices would be easy to flex and consequently may reign as the cheapest option in the segment.

TOTAL 1,656,77 5

Some of the direct competitors of the THAR are: Toyota RAV-4

Honda CRV

Mazda CX-5

Ford Escape

Chevrolet Equinox

Nissan Rogue

Hyundai Tucson

There are around 37 various models from various manufacturers in the compact SUV segment, out of which the above 7 vehicles have the highest sales figures.

Manufacturer/Mode l Chevrolet Equinox

Jan 1,229

Feb 1,591

Mar 964

Apr 431

May 957

Jun 1,005

Jul 1,212

Aug 1,077

Sep 1,167

Oct 968

Ford Escape

1,738

2,250

1,363

874

1,943

2,040

2,704

2,403

2,604

1,966

Honda CR-V

3,793

3,564

1,825

755

3,090

1,355

5,076

5,246

4,500

5,059

Hyundai Tucson

1,354

1,672

1,117

590

1,661

2,529

2,895

2,455

2,292

2,615

Mazda CX-5

1,531

1,601

1,153

419

1,354

2,909

2,901

2,632

2,283

3,153

Nissan Rogue

2,098

2,127

1,293

781

1,736

1,822

2,999

2,666

2,888

Toyota RAV4

3,882

4,065

2,872

1,432

3,268

2,756

6,472

7,646

6,896

2,560 12,44 4

Nov 795 1,61 5 3,85 8 2,37 2 2,72 5 2,10 3 9,93 6

Dec 1,106

Total 12502

2,247 12,01 4

50135

6,892

28444

7,922

30583

2,925

25998

6,308

67977

The most popular SUV in Canada in recent times is the Toyota RAV4, a recreational activity vehicle, all-wheel drive. It is also Toyota Canada's best-selling vehicle. Following closely is the Honda CRV with respect to Sales figures. So, THAR would eventually go into battle with these two vehicles.

THAR Target Customers: Young Working Executive Class, Millennials/ Generation Y, both urban and rural dwellers, Farm Owners, Ranchers, Off Road Enthusiasts The bar chart below shows the Auto Buyer demographics of Canada. M&M THAR’s primary target customer is the 25-44 year old range followed by the 45-64 year old and lastly the 18-24 year old. The 18-24 year old are not employed and mostly prefer resale vehicles.

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References: (https://en.wikipedia.org/wiki/Mahindra_Thar)

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https://www.theglobeandmail.com/globe-drive/auto-shows/north-america/compact-suvs-the-clear-winner-incanadas-vehicle-popularitycontest/article37976507/ https://www.goodcarbadcar.net/2021-canada-small-suv-sales-figures/ https://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/home https://www.youtube.com/watch?v=LoUdNi-WuGE&t=691s...