Mahindra & Mahindra (M&M) hopes to give popular entry-level sedans, such as Maruti Suzuki Dzire and Toyota Etios, a serious challenge with the launch of the re-designed ‘Verito’ sedan.
The only passenger car in its portfolio of utility vehicles, the new Verito’s prices start at Rs 5.27 lakh (petrol) and Rs 6.26 lakh (diesel).
The makeover, which cost the company about Rs 50 crore, is expected to boost sales from the current monthly average of 1,500 units.
“At Nashik, we have annual capacity of 25,000 units for the Verito. This can be further expanded when needed,” said Mr Pravin Shah, Chief Executive – Automotive at M&M.
Six variants are on offer.
M&M will also launch a new sub-four metre variant of the Verito this fiscal, Mr Shah said. This would fall in the lower tax bracket (12 per cent excise duty and not 22 per cent), and compete with smaller hatchbacks from Maruti, Hyundai and Ford.
The Verito is essentially a re-badged Renault Logan sedan. Initially, it was produced in India under a Mahindra-Renault joint venture set up in 2005. Though the initial target was to sell about 4,000 units a month, volumes proved to be very low, falling to 300 units a month by 2010.
“May be in the option available, they (buyers) didn’t like the shape. There were three factors for it not to work, competition, regulation norms and customer,” Mr Shah said.
In 2010, M&M bought out Renault’s 49 per cent stake in the joint venture and continued selling the car under with a slight re-design and a new brand – Verito. In the last two years, sales went up 80 per cent to about 1,500 units a month.