Mahindra & Mahindra on Friday launched new models of its sport-utility vehicle Scorpio and cut its price ranging from Rs 34,000-70,000.

Announcing this, company's president (automotive sector) Pawan Goenka said that M&M has, however, increased the price of its latest utility vehicle Xylo, which was launched in January. The hike ranges between Rs 10,000 and Rs 12,000 per unit.

Goenka said that the company has put in around Rs 50 crore to come out with the revised variants of Scorpio, which features advanced mHawk engine and sports new front grille, bonnet scoop, fog lamps, seats, 2-Din audio system among others.

"There are three major reasons for the price cut for Scorpio. The reduction in commodity prices being the first.

There was a significant drop in commodity prices from the December 2007 level. In addition, we have learned a lot on how to reduce prices from the making of Xylo. Also, when the plant capacity goes up, you save," Goenka said.

M&M launched utility vehicle (UV) Scorpio in 2002 and so far has sold 160,000 units in India and around 20,000 abroad. The vehicle went for a major facelift in March 2006.