Expanding its portfolio in the sport utility vehicle (SUV) segment, domestic auto major Mahindra & Mahindra on Friday said it will launch a premium sports utility vehicle in the country by the end of the next financial year and eventually export it to the US.
M&M is investing Rs 700-800 crore to develop the product that will fill the vacuum above Scorpio in the SUV segment.
?We are moving up in beyond Scorpio and our upcoming product is being developed keeping in mind the global markets,? Pawan Goenka, president (automotive), M&M, said at the 10th Auto Expo here. He said the vehicle will roll out from the company?s facility at Chakan in a year?s time.
?We are investing Rs 700-800 crore in developing the new SUV and this investment is made considering the export market also. At first, it will be sold in India, but eventually will will export to the US after a period,? Goenka added. He, however, declined to give details about the expected price of the new SUV.
M&M invested Rs 2,500 crore for setting up a new facility at Chakan, which would have a total installed capacity of 3 lakh units a year. According to Goenka, the company would roll out three-four new products from the Chakan facility.
The company?s flagship product Scorpio is already set for the US market and is now undergoing homologation. ?Currently, we are carrying out the homologation process and hope to get the necessary approval before the end of this fiscal,? he said.
Scorpio meant for the US would boast of a completely different engine and interiors. The company would start producing it by the end of this fiscal and is expected to begin shipments by early 2010-11. ?Initially it will be produced at the Nashik facility. After six months, we will revisit our decision and take a second look depending upon the volume, if the Scorpio can be assembled in the US,? Goenka said.
