M&M to build an all-new SUV

NEW DELHI: After dominating the Indian market with its indigenously-built SUV Scorpio, Mahindra & Mahindra (M&M) is working on one of

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its most ambitious projects - building an all-new SUV from scratch with an eye on foreign markets. M&M will invest Rs 700-800 crore in the new product that is expected to be out before the next fiscal-end.

After losing Ford's Jaguar and Land Rover (JLR) to Tatas, M&M seems to have taken up the challenge to build its own new global brand for foreign markets.

While naming the product under development as 'Global SUV', M&M feels the new SUV has a market abroad where people are looking for a value-for-money vehicle. M&M V-C and MD Anand Mahindra had earlier said that the Indian utility vehicle major was not worried over the JLR loss but rather set to compete with the SUV maker.

Pawan Goenka, president, automotive division, of M&M, said the new SUV will be manufactured at the company's Chakan plant in Maharashtra and positioned a notch higher than the flagship Scorpio. "Yes, we are building an all-new SUV and are investing Rs 700-800 crore for this product that will come at a premium to the Scorpio in terms of pricing and positioning," Goenka said.

However, while Goenka referred to it as an SUV, sources engaged in development said it will be a crossover - a vehicle derived from a car platform while borrowing features from a SUV. Crossovers - that offer riding comfort of a car while carrying the macho looks of an SUV - typically are designed for light off-road capability. Some of the popular crossovers are BMW X3, Honda CR-V, Nissan Rouge and Toyota Highlander.