The company is developing an engine with a capacity ranging between 650cc and 750cc, said Hemant Luthra, president, Mahindra Systech. He declined to give more details. The Rs 28,500-crore group, which is partnering France's Renault to sell Logan, aims to expand presence in all the segments of the market. The Tata group's plan to sell the world's lowest-priced car has spurred many companies, including M&M, to follow in its footsteps.
Mahindra Bolero, powered by 2.5 litre engine, is priced at Rs 5.28 lakh. The utility vehicle is among the largest selling vehicles in rural India. Mahindra Logan, a mid-sized sedan, is powered by 1.4 litre petrol engine which is imported from France.
Italian acquisition
Meanwhile, M&M today announced the acquisition of 100 per cent stake in Italy-based engineering and design firm, Engine Engineering Srl, for an undisclosed amount. The company intends to utilise the Italian company's expertise in making small, yet fuel-efficient engines, suitable for small vehicles.
Luthra said, "We have acquired a company, which apart from making designs for high-end motorcycles, has proficiency in optimising fuel economy from a small engine
