Mahindra planning to invest Rs 4,000 crores in new plant: Two new SUVs by 2015
Makers of successful utility vehicles like Bolero, Scorpio and XUV500, Mahindra now wants to enter the compact utility vehicle segment. This segment is one of the fastest growing segments in the Indian auto industry, and researchers have revealed that growth potential in the near future is immense for this segment. This is the reason many car makers in India have started working on a compact SUV platform. The list includes Maruti Suzuki, Hyundai, Honda, Tata, Datsun, Volkswagen, Mahindra, and many more.
Mahindra is currently working on three new concepts – S101, S102 and S103. The first is a compact SUV, like the Ford EcoSport and will be under 4 meter in length. The second, S102 is also a compact SUV, but will not be under 4 meters. This will be slightly longer and will compete with the likes of Renault Duster and Nissan Terrano in India. As far as S103 is concerned, this will be a MPV which will feature three row seating and will compete with Maruti Ertiga and soon to be launched Honda Mobilio.
Of the three, Mahindra is expected to launch the first two, S101 and S102 in 2015, while the third is planned for 2016. Mahindra is launching these products to drive-in more sales, new buyers to the company. In order to increase sales, they will also have to be ready to produce new vehicles, which is where this planned new plant comes into picture.
As per a report by Reuters, Mahindra was planning to setup a new plant for a long time, but due to recession and slow demand, they had to delay. But, with analysts expecting a turn around in the coming months, especially after the win of Narendra Modi led BJP in recent Lok Sabha elections. Mahindra says, that they are now close on making a decision on the new plant. If not a new plant, Mahindra is also thinking on the lines of increasing production at their existing plant in Chakan near Pune. Exact details will be revealed in next month.