M&M to take on Duster, Mobilio with two compact utility vehicles

Company claims it has a robust product pipeline all the way up to 2019

Domestic utility vehicle major Mahindra & Mahindra (M&M), which has been struggling with sales growth over the past one year, is looking at introducing two new products in the domestic market in 2015.

The products include a compact sports utility vehicle (codenamed S101), which will be pitted against best-sellers such as Renault Duster and Ford EcoSport, and a multipurpose vehicle (codenamed U301), which will take on the likes of Maruti Suzuki Ertiga and Honda's soon-to-be launched MPV Mobilio.

The products when launched will be completely new offerings from the company in around two years.

Rajan Wadhera, head, Mahindra Research Valley (MRV), "We have a robust product pipeline ready all the way up to 2019. Next year onwards, we would have a couple of new launches every year. The new product offerings would start off with a compact sports utility vehicle and a multi-purpose vehicle, scheduled for launch in 2015."

M&M, which is developing two new platforms in association with Korean subsidiary Ssangyong Motor Corporation (M&M), will also bring to the Indian market a compact crossover utility vehicle (CUV) post 2015. The CUV based on partner's X100 platform is likely to be powered by a 1.6 litre diesel engine.

Even though sales in the utility vehicle segment declined by five per cent to 525,942 units amid an overall sluggish market sentiments in the last financial year, sales of compact sports utility vehicles and multi-purpose vehicles have gone up by 6.5 per cent to 290,823 units in the same period.

A spate of companies from General Motors (concept SUV Adra) to Volkswagen (concept SUV Tiguan), Fiat (Avventura) and Tata Motors (concept Nexon) showcased concepts of compact sports utility vehicles to lure the Indian buyers at the auto show earlier this year. Maruti Suzuki, Hyundai and Mahindra & Honda are also slogging in out to put on roads smaller utility vehicles to meet the success tasted by Renault Duster and Ford EcoSport.

M&M, which has no new launches scheduled for 2014, has seen sales decline by 18.14 per cent to 254,344 units in the last financial year. In the three months till June 2014, the company's passenger vehicle sales have skid by a further 12 per cent to 53,013 units.

To refurbish its product portfolio M&M is working on products independently as well as leveraging partner Ssangyong's strong research and development capabilities to develop new vehicles for domestic as well as global markets. Apart from the two new platforms, M&M is also jointly developing a family of six engines with the Korean utility vehicle maker.

In the largest outbound deal recorded in the domestic auto industry, M&M had acquired 70.03 per cent stake in SMC for Rs 2100 crore in 2011.