When Mahindra Group, India‘s automotive giant, entered the Australian aircraft manufacturing business in 2009, it seemed like an ambitious but logical diversification. The company acquired GippsAero (Gippsland Aeronautics) and Aerostaff Australia, planning to manufacture 8- and 10-seater planes for the global market.
But what followed was 15 years of mounting losses, production shutdowns, and ultimately, a complete exit from the business.
What Went Wrong?
The problems were clear early on. In November 2020, Mahindra Deputy Managing Director and Group CFO Anish Shah announced they had “shut down our Gipps Aero business, which was into the manufacturing of 8- and 10-seater planes in Australia.”
Shah was blunt about the situation: “For the…