Mahindra & Mahindra (M&M) is looking to enhance its market share in the utility vehicles segment with the upcoming compact SUV, TUV300 which is expected to be priced around Rs 7-9 lakh, said the media reports.
The company will launch the TUV300, which will be available only as diesel option, this week. It is looking to take on the likes of Ford's EcoSport and Renault's Duster that are priced between Rs 7.88 lakh and Rs 13.54 lakh (ex-showroom Delhi).
Besides, it will also compete with compact crossovers such as Toyota Etios Cross, Hyundai i20 Active and Fiat Avventura, which are priced in a range of Rs 6.23 lakh to Rs 8.89 lakh (ex-showroom Delhi).
"With the TUV300, we will be enhancing our position in compact utility vehicles segment. It will not only add to our overall portfolio but will help us gain both volumes and market share without cannibalising our other existing products," M&M President & Chief Executive (Automotive) Pravin Shah told PTI.
In the April-July period this fiscal, total utility vehicle sales in the country stood at 1,73,255 units, while that of M&M were at 62,558 units, translating into a market share of 36.1 per cent.
Dispelling "misconceptions" that the TUV300 will replace the company's top seller Bolero utility vehicle, Shah said: "It is a completely newly developed, true blue SUV targetted at different segment of customers, while Bolero continues to be our best seller meeting transportation needs in semi-urban and rural markets mostly."
Commenting on the significance of the new model, he said the company did not have a major presence in the compact SUV segment, while M&M's forte has been in the bigger UV segment, with models such as the Scorpio and XUV500.
"We did have a model, Quanto, in the compact SUV segment but it didn't quite meet with the success we were looking for. Now we are ready and be competitive in the segment with the TUV300, which will have all the features that consumers are looking out for," Shah said.
The TUV300 has been designed and developed in-house. The research and development of Mahindra TUV300 has been carried out at the Mahindra Research Valley in Chennai.
The vehicle will be manufactured at M&M's facility at Chakan, where it also produces trucks and other vehicles on the Maxximo platform.