Mahindra investing Rs 2,000 crores on two new platforms
Not many years ago, a rush was seen in Indian auto industry when every car maker wanted to build a small car, as that was the segment which was experiencing most sales. A similar rush is now seen in the compact SUV segment. There is hectic activity in the compact SUV segment. Automakers are doing everything they can to ensure that they have a slice of pie from the growing compact SUV segment in India.
2014 Auto Expo saw many car makers showing their compact SUVs- Datsun Redi-GO concept, Volkswagen Taigun, Chevrolet Adra, and Tata Nexon. Apart from this, some which were not on display, and are still in the development phase, are Maruti XA Alpha, Hyundai Grand i10 based SUV, Honda Brio based SUV, and Mahindra’s S101, which has already been spotted on test in India.
Mahindra has revealed that the company has invested Rs 1,000 crores each on two new platforms. On these platform, they will be launching two new compact SUVs next year, in the Rs 5-6 lakh price bracket. The compact SUVs will each cater to a special segment with one of these being focused on metros and major cities across India while the other will be targeting buyers in semi urban and smaller markets. Export to markets such as South Africa, Chile, Brazil and Indonesia are also on the cards. These platforms will also cater to future range of cars from Mahindra.
Just like many major car makers in India, sales of Mahindra & Mahindra too have dipped. In the last 10 months, their passenger vehicle sales have declined 19%. But, with these new product launches in the growing segment next year, the car maker hopes for increase in sales. (via)