Mahindra's hatchback to be priced between Rs 2.5-3.5 lakh

India's home grown auto major Mahindra and Mahindra is mulling over to foray into the small car segment with the launch of its 1000-cc hatchback priced competitively at Rs 2.5-Rs3.5 lakh. Mahindra and Mahindra was earlier pondering to set up a factory at either Haryana or Tamil Nadu, but now after along consideration the company has decided to set up the manufacturing facility at Tamil Nadu. M&M will be spending around Rs800 crore to set up plant in Tamil Nadu.

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Pawan Goenka, M&M automotive division president had earlier stated that the company is thinking on the lines to launch two small cars, one a smaller version of Mahindra Verito and one another small car.

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Mahindra & Mahindra has zeroed into four vendors for the 'BRL' (codename) project, not only this but the company has also shown the prototype to the vendors. The vendors however did not confirm anything, but these vendors chosen by Mahindra and Mahindra are specialists inpowertrain, lamps and steering systems respectively. The manufacturing of this small car is expected to commence by 2013-2014.Mahindra and Mahindra has already carved a niche for itself in the SUV and sedan segment with its flagship Mahindra Scorpio and Mahindra Verito which roped in good numbers in June sales.

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Apart from M&M, Hyundai is also planning to bring a small hatchback christened Hyundai H800, priced competitively in order to rival Maruti Alto and Tata Nano. Maruti offers a variety of small cars in India and has been ruling the hatchback segment for a long time now. Hyundai however has some small cars already in the market, but it envisages to topple the Maruti's intact market share by launching Hyundai H800. Mahindra and Mahindra after capturing the SUV segment is now eyeing at the hatchback segment in the Indian car market, it seems the company does'nt want to be confined to the SUVs or sedan cars in India.

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