Ending the second last month of the ongoing fiscal on a successful note, Mahindra & Mahindra has planned to invest an additional amount of Rs. 700 to Rs. 800 crore each year on the development of its new models. Reportedly, the auto maker recorded a double digit growth in February 2013, owing to new launches in the dwindling market conditions.
Expressing his views on this news, at the sidelines of launch of new Maxximo Plus mini truck, the Chief Operating Officer (CEO) in Product Development and Sourcing (Auto & Farm Sector), Rajan Wadhera said, “New products have played a big role in our growth in the past few years. We will continue to invest in new products at an average of Rs700 crore to Rs800 crore every year on new products alone, excluding capacity expansion in our automotive business for the next three to five years.”
For its future offerings, the auto maker has been working on a new sub-4 metre Verito sedan, Reva NXR electric car and a couple of new variants of its existing utility vehicles for 2013. Following the launch success of Quanto, XUV500 and SsangYong Rexton, the country’s largest utility vehicle maker has expanded its product portfolio and targeted new clientele, which turned out be volume puller for the company.
Wadhera further said that the M&M is planning to enter new segments and introduce new models of its existing cars, which is expected to enthral the Indian auto aficionados. It must be noted that between April and February 2013, the demand for M&M’s passenger vehicle surged 29 per cent, amounting to 2,53,423 units over 1,97,095 units, recorded in the corresponding tenure of year-ago period. A major chunk of sales were driven by XUV, Quanto and Rexton, which all happens to be flagship models of the company.
Interestingly, the small Commercial Vehicle (CV) segment of the Indian auto industry also increased by 14 per cent to 1,57,021 units. In order to boost its sales in the LCV space, the auto maker has introduced a revamped model of its mini truck Maxximo with a price tag of Rs. 3.4 lakh. Named as Maxximo Plus, the auto maker claims that the new model offers a mileage of 21 kmpl, which equates to somewhere around more than 30 per cent over its strong competitors.