M&M to develop low cost UV

Mahindra & Mahindra (M&M) is developing a platform for low-cost utility vehicles (UV).

M&M is working on its Scorpio, which it expects to roll out by the end of 2009. As reported by Business Standard, Arun Jaura, senior vice-president (R&D and global product development), said that the vehicle will be priced at Rs 4 lakh or less.

Bringing the entry level for UVs down to Rs 4 lakh from the current level of about Rs 6 lakh.

The company expects to achieve this by reducing the size of the vehicle to that of a five-seater. At present, utility vehicles typically accommodate seven people (or more in some cases).

The other method being adopted is using engines of much smaller cubic capacity displacement - 800cc to 1,200cc.

M&M hopes to retain higher power output of their engines despite using smaller engines.

The low-cost utility vehicles may also do away with the overdrive option in their gears to reduce cost. The company is also looking at new types of materials, especially plastics, to further reduce costs.