New Delhi, March 24: Automobile major Mahindra and Mahindra (M&M) will invest Rs 4,300 crore in collaboration with its Korean partner SsangYong to develop next-generation compact engines for compact cars and sports utility vehicles (SUV).
According to sources, the engines will be developed at the company’s research and development centre Mahindra Research Valley near Chennai.
The company plans to come up with a host of compact cars and SUVs, to be manufactured in collaboration with SsangYong, in the next few years.
“The company has a clear picture of the array of cars it plans to launch in India and abroad in the near future. If all goes well, we will launch at least four cars in the next two years. Hopefully, a new compact SUV and a small car will be available by 2015. For this purpose, we are developing newer, better, compact and powerful engines,” a senior official said.
M&M plans to introduce a semi-premium compact SUV soon to compete with the Ford EcoSport. The car will be priced at Rs 8-10 lakh, which is the estimated cost of the EcoSport.
Compact SUVs are touted to be the new money-spinner for car firms following the success of Renault’s Duster and Mahindra’s Quanto.