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M&M eyes foreign markets for exporting Scorpio

Fakir Chand in Bangalore

Mahindra & Mahindra Ltd, the Nasik-based multi-utility manufacturer, which launched its first sports utility vehicle early this month, is setting its sights on the international markets for exporting the Scorpio model in a big way.

Though the Rs 32-73-billion company will be initially concentrating on the domestic sector to drive Scorpio's sales in a tough and competitive market dominated by the likes of the Tatas and Toyotas, it is targeting around 15 per cent of its production for exports during the current fiscal (2002-03).

M&M's state-of-the-art Nasik plant has currently an installed capacity of rolling out 2,500 SUVs per month, and will be scaling up the capacity to 45,000 next year to augment production and meet demand.

During the last four years, India's largest multi-utility manufacturer had invested over Rs 6 billion for the design and development of India's first mid-segment sports utility vehicle.

It has tied up with international vendors such as Lear and Visteon, Bridgestone, Borg-Warner, Meritor, AVL of Austria and Renault of France for the supply of components, accessories, interiors and engines.

"We have initiated discussion with multi-utility vehicle companies and dealers in Russia, Georgia, Malaysia, Indonesia, South Africa and China for exporting the Scorpio as either completely build unit or completely knocked or semi-knocked down.

We will be conducting road shows in these countries during the course of the year to demonstrate the extraordinary features of Scorpio and its price advantage over the existing SUVs in these respective countries," M&M executive director Alan E Durante told rediff.com in Bangalore on Thursday.

The company already has a presence in Euro-Asia region with the export of its earlier multi-utility vehicle Bolero to Russia, Georgia and Malaysia since its launch couple of years ago. It has also set up an assembling plant in Georgia for supply of Bolero's diesel and petrol variants.

"We are sending a senior team to study the Chinese market in details as sport utility vehicles of global brands are expensive though they boast of the same features that Scorpio has. Since left-hand drive is in practice in China, we may have to change the configuration to customise the vehicle for its market," Durante stated.

In the sub-continent, the company is planning to enter the Saarc market, except Pakistan, as all these countries have right-hand driving. "We are initially looking at Bangladesh, Nepal and Sri Lanka where Scorpio is ideally suited to tackle the rugged and terrain conditions," Durante added.

The Gulf region is another exciting market where driving in the desert is a popular sport. "The Scorpio's 116 bhp petrol engine generates a torque of 18 kgm, and goes from 0-60 kmph in 8 seconds flat. Built like a tank, its power steering is speed-sensitive for better control. Its extra-wide tyres have a strong road grip, and its hi-tech braking prevents locking at even at high speeds.

After launching Scorpio in the western and northern markets early this week, Scorpio is entering the southern market next week to offer both the diesel and petrol versions, with a price tag ranging between Rs 560,000 and Rs 717,000.

The company officials, however, did not disclose when it will be able to achieve the break-even, either in terms of number of vehicles sold or the time frame for it.

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