Mahindra mulls smaller petrol engines for upcoming compact cars

Mahindra and Mahindra has taken an initiative to develop smaller petrol engines for its future compact car models. This is a step taken by Mahindra and Mahindra to divert the attention from the high diesel car demand. The leading SUV manufacturer is looking to produce the smaller engines of 1 -1.2 L capacity, which is likely to happen in the next three years. While diesel cars are popular today with lower fuel price and relatively more fuel-efficient, the petrol cars have their own advantages and M&M is currently involved to drive home the point.

Apart from the small engine production, Mahindra and its Korean subsidiary, Ssangyong are jointly developing the engines with larger capacities. Apparently, the Indian auto major has many compact car launches likely to take place during the next year. The launches of sub-compact version of Mahindra Xylo, Mahindra Verito and Mahindra Reva NXR electric car are on the board. These models will be of sub-four meter length to bring down the cost based on the government’s policy, which attracts lower excise duty on the cars under 4 meter in length and small engines – up to 1.2 Liter for petrol engine and a 1.5 Liter for diesel engines.

Mahindra and Mahindra will develop three new cars in synergy with Ssangyong, out of which the compact car development is in the most advanced stages. The Indian auto major intends to reap the benefits from the small car launch to pipe the profits into the other models development. Mahindra and Mahindra has around 60% of the market share for its utility vehicles as of now. However, the auto brand envisages increasing its presence in the compact car segment, which occupies 70% of the Indian car industry. With the current strategy, M&M will be entering into the league of the leading small car manufacturers, Maruti India, Hyundai Motors and Tata Motors.

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