After a troubled attempt, Mahindra & Mahindra has now put its plans to develop a vehicle for the US on hold, attributing the move to regulatory changes and market conditions.

However, the company will “continue to monitor the US situation and remain flexible with its approach to this market,” it said, according to the Hindu Business Line.

The company’s statement came as auto demand in the US market is gradually improving, due to stable fuel prices and greater access to credit.

Mahindra has faced some legal hurdles in its foray to the US, the world’s second-biggest market after China.

The company had been developing a vehicle for the market since 2006 and in 2010, it said it planned to develop a 2.2-litre, four-cylinder compact pick-up truck, a version of its Scorpio utility vehicle for the US market as well as a new SUV with a petrol-electric hybrid version.

But in June 2010, Mahindra’s Georgia-based dealer Global Vehicles USA filed a suit in the US District Court in Atlanta, accusing Mahindra of violating a 2006 agreement that Global Vehicles would be the exclusive distributor of its vehicles in the US.

In March, an international arbitration panel rejected the distributors’ claims.

M&M US launch plans dented by legal action