Automotive major Mahindra & Mahindra (M&M) has said that it will look into weight reduction, fuel efficiency improvement and development of alternative fuel power trains for its vehicles as part of its strategy of sustainable mobility solutions.

?The company continues its focus on developing new products and technologies to meet ever-growing customer needs, regulatory requirements, competitive pressures and to prepare for the future. Sustainable mobility solutions are a key focus area and will continue to aggressively pursue technology development in this area. Some of the key thrust areas in this direction are weight reduction, fuel efficiency improvement and development of alternative fuel powertrains. Further, safety related technologies are another key area of focus for the company,? M&M said in its annual report 2009-10.

The company has programs for development of vehicles which would run on alternative fuels like CNG, bio-diesel, hydrogen and electric traction. The company said it aimed to increase focus on developing overseas markets through new products and brand-building.

The company plans to enter the US market with a pick-up vehicle this fiscal. The company also continues to actively search for overseas partners to supplement and strengthen its domestic market in both the sectors.

M&M said rising cost of commodities and the supply constraints on certain critical components remain a concern. For the year-ended March 31, 2010 the material cost for M&M increased by 33%.

?The rising cost of commodities and the supply constraints on certain critical components are a source of considerable concern and company hopes to counter this through an intensive and continuous focus on cost controls, product innovation and customer delight,? the annual report said.

?After a year of decline in raw material prices, financial year 2010-11 is expected to see a firming of prices in the international market. While this is an area of concern and will put pressure on margins, the company will continue to focus on cost re-engineering to minimise the impact of this development.?

?Given the poor monsoon and rise in global commodity prices, inflation has risen sharply since November,2009. Containing inflation is likely to remain a key challenge for the Government and policymakers in the near term,? it added further.