M&M lines up another SUV

A year after the Scorpio was launched, Mahindra and Mahindra has another sports utility vehicle in the works, on a completely different platform though.

M&M Vice-Chairman and Managing Director Anand Mahindra said, "This time, you will see even more excitement than the Scorpio launch." But citing competitive pressure, he declined to share more details.

M&M's Scorpio was also poised to roll into Russia, China, South Africa and Brazil, Mahindra said, adding that the company was zeroing in on these markets to provide sales volumes.

He said to leverage on its production cost advantage, M&M was drawing up a plan to target select export markets for the Scorpio.

"We are looking at markets with India-like dynamics that are set to grow exponentially, and the price-to-performance ratio is a key factor for success," Mahindra said.

Asked whether a Tata-Rover like alliance for the Scorpio was an option, he replied: "That would be ideal, to give us volumes. In two of these four countries, the plans are almost through. So wait till then."

M&M is weighing a two-pronged approach for entering these markets, which includes tie-ups with local distributors or established global players for assembling and marketing the vehicles. "We are open to all options," Mahindra said.

"It is our ambition now to emerge as a niche global player and be recognised as a respected maker of sports utility vehicles, much like what Land Rover once was," said Mahindra.

He added that over the next three years, exports would form a major chunk of M&M's sales. "We hope to export about 20 per cent of our sales in volume terms in the next two-three years," Mahindra said.

M&M has made a small headway in Europe through a tie-up with Eurasia Motors in Italy.

"We have begun to sell the Scorpio in Italy with a Peugeot engine, and are meeting safety and other requirements. So there is no reason why we can't sell in more sophisticated markets like the UK, from where we have received lot of inquiries. But we are more keen on the countries that will give us the volumes," Mahindra said.