Mahindra & Mahindra plans to “aggressively ramp-up” production for the recently launched Quanto.

But, it expects the demand to be less than its larger sibling XUV500. The new compact SUV with a 1.5-litre diesel engine is priced between Rs 5.99 lakh and Rs 7.57 lakh (Delhi).

For the Quanto, the company has a “flexible” monthly installed capacity to make about 4,000 units (with exports). This is part of a 7,000 unit capacity at its Nashik plant for the Quanto and Xylo combined.

The XUV500’s unprecedented demand saw the company doubling output to 5,000 units (from October).

Pravin Shah, Chief Executive for M&M’s Automotive Division, said that the output for Quanto will be increased to 2,500 units next month. “The Quanto targets buyers of entry sedans and premium hatchbacks and we expect it to do well in both tier-I and II cities. We would love to sell more than 4,000 units, but it will be tough to outsell the XUV500,” he said.

Exports

Production of the Quanto will be increased to 4,000 in the next 2-3 months as exports start to South Africa, Eastern Europe, followed by South and Central America.

“We will also likely offer the bigger 2.2 litre mHawk diesel engine for the export markets, while the 2.2-litre petrol engine used in the Scorpio may also be considered,” Shah said.

roudra.b@thehindu.co.in

(This article was published on September 21, 2012)
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