The Hindu Business Line : Mahindra working on two new vehicle platforms

Plans on the anvil
Company working on a SUV platform that will be upmarket to its current range of models
The second platform is based on a mass-market cargo and passenger vehicle

Mumbai May 28 Mahindra & Mahindra (M&M) has announced plans to develop two new vehicle platforms alongside the development of the Ingenio project.

On the sidelines of the company's quarterly results announcements, Dr Pawan Goenka, President, auto sector, M&M, said that the company is working on a SUV (sports utility vehicle) platform that would be slightly upmarket from the current range of models in the Mahindra stable.

The second platform is based on a mass-market cargo and passenger vehicle that would be the first vehicle offering from its Pune plant.

Dr Goenka said that the company will be infusing a similar amount (Rs 600 crore) of investment in each of the two new platform projects like the Ingenio project. Of the three projects on hand, M&M will introduce the Ingenio project (from Nasik plant) first, followed by the mass market cargo and passenger vehicle (from Pune plant) and the SUV platform from the forthcoming Mahindra Renault Nissan plant in Chennai.

Vehicle sales up

Meanwhile, in the fourth of fiscal 2007, the company sold 39,879 utility vehicles against 33,654 units sold in the same quarter of the previous year - a growth of 18.5 per cent. In FY 2007, the company sold 1,27,856 utility vehicles as against 1,14,694 units sold in the previous fiscal - a growth of 11 per cent as against an industry growth of 14 per cent.

In the outlook of FY 2008, there is no concern with respect to interest hikes for flagship utility vehicle brands like Scorpio and Bolero, though commercial vehicle segment could get affected; the auto sector is expected to grow by 10-12 per cent, said Dr Goenka. In the export market, the company's volumes grew from 5,534 units in the previous year to 8,021 units in the year under review - a growth of 44.9 per cent.

Tractor sales

During the quarter, the company sold 21,519 tractors compared with 19,374 units in the fourth quarter of the previous year - a growth of 11.1 per cent. For the year as a whole, the company sold 95,006 tractors against 78,048 units sold in the previous year, a growth of 21.8 per cent. The company recently acquired 43.3 per cent in Punjab Tractors and is in the process of making an open offer of 20 per cent in the open market as per the SEBI guidelines. It is now looking at utilisation of Punjab Tractors' vehicle production capacity (65,000 units) and its foundry and engine capacities too. For the full year, tractor exports were 7,525 units compared with 6,981 units in the previous year, registering a growth of 8 per cent.

On the sidelines of the company's quarterly and annual results press meet, senior officials said that Mahindra Holidays that has its business into the hospitality sector and part of the Mahindra & Mahindra group would float its initial public offering this fiscal.

More Stories on : Outlook | HCV/LCV/Tractors | Mahindra & Mahindra Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page