Mahindra & Mahindra (M&M) has decided to spend Rs 2,250 crore in the next two years to develop new vehicles to be unveiled by 2009 end. The company has been developing four new platforms simultaneously in the utility and multi-purpose vehicle space aimed to further strengthen its presence in the non-car market.
The company has two highly successful offerings in this segment - Scorpio and Bolero. Of the Rs 4,500 crore investment planned for the company''s Chakan project, which is a part of the company''s planned capital expenditure of Rs 6,400 crore till 2010, about Rs 2,250 crore will be used to fund development of new vehicles including the Ingenio, a premium sports utility vehicle (SUV), a pick-up and a mass market platform.
The Ingenio multi-purpose vehicle (MPV), which so far has seen an investment of Rs 550 crore, will be the company''s most ambitious project after Scorpio, launched six years ago. The premium SUV project will be based on a completely new platform targetted at the Rs 14-18 lakh price bracket. The aim is to have a presence in the premium SUV segment, which has so far seen a growth of more than 60 per cent this year. The segment has been dominated by players such as Ford (Endeavour), Honda (CR-V) and Toyota (Land Cruiser Prado).
Although the SUV segment is small in size, at 1,200 units a year in the domestic market, the demand for fuel-efficient SUV''s globally in markets such as Europe and the US is very upbeat. M&M will launch its SUVs in the US in 2009, while Scorpio, christened as Goa, is sold in the European market. The mass market platform will address the demand for cargo movers designed to handle goods as well a passenger carrier too. The company is also looking at the pick-up market and planning to have a significant presence in the segment.
The company has two highly successful offerings in this segment - Scorpio and Bolero. Of the Rs 4,500 crore investment planned for the company''s Chakan project, which is a part of the company''s planned capital expenditure of Rs 6,400 crore till 2010, about Rs 2,250 crore will be used to fund development of new vehicles including the Ingenio, a premium sports utility vehicle (SUV), a pick-up and a mass market platform.
The Ingenio multi-purpose vehicle (MPV), which so far has seen an investment of Rs 550 crore, will be the company''s most ambitious project after Scorpio, launched six years ago. The premium SUV project will be based on a completely new platform targetted at the Rs 14-18 lakh price bracket. The aim is to have a presence in the premium SUV segment, which has so far seen a growth of more than 60 per cent this year. The segment has been dominated by players such as Ford (Endeavour), Honda (CR-V) and Toyota (Land Cruiser Prado).
Although the SUV segment is small in size, at 1,200 units a year in the domestic market, the demand for fuel-efficient SUV''s globally in markets such as Europe and the US is very upbeat. M&M will launch its SUVs in the US in 2009, while Scorpio, christened as Goa, is sold in the European market. The mass market platform will address the demand for cargo movers designed to handle goods as well a passenger carrier too. The company is also looking at the pick-up market and planning to have a significant presence in the segment.
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