Mahindra wants to decide by mid-2010 whether or not to set up a US assembly operation.

Mahindra’s head of automotive operations, Dr Pawan Goenka, told Reuters: “By mid-2010 we want to make a decision about whether to produce in the US or not.”

The report said that Mahindra is looking at various options for assembling its pickup trucks in the US including buying or building a plant or relying on contract manufacturing.

Dr Goenka also told Reuters that M&M is not looking into opening a production plant in Europe at present because volumes – around 2,000 a year – are too small.

Mahindra is planning to begin US sales in the first quarter of 2010 when it plans to introduce a pickup range. An SUV will follow later.

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Earlier this year Dr Goenka, told just-auto that M&M is planning a network of 300 dealers through its US distributor and that it would have a diesel engine that meets the strictest emission rules.

See also: INDIA: M&M confirms US sales entry plan for early 2010