Compact car with sedan functionality will take on Maruti's Swift and DZire.
Mahindra & Mahindra (M&M), India’s biggest utility vehicle (UV) maker, has zoomed into the compact car segment, where Maruti Suzuki and Hyundai are dominant, with its aggressively priced Verito Vibe, a sub 4-metre vehicle based on the Verito (Logan) platform.
Clearly, M&M intends to take on Maruti Suzuki’s Swift. It has invested Rs60 crore in the development of the Vibe, and has launched three variants which will be powered by a 1.5 litre dCi diesel engine, with prices starting from Rs5.63 lakh and going up to Rs6.49 lakh (ex-showroom Mumbai, without octroi).
M&M is hoping that the Vibe will add incremental volumes to the Verito category. It is targeting a niche segment by calling the Vibe a compact car and not a hatchback or a sub 4-metre sedan.
“It’s a unique styling. We were thinking of calling it a sportback and create a new segment but we will let the consumers decide what they want to call it. We’ve created a new niche – it’s a hatchback with sedan functionality, very innovative. The pricing is comparable to a hatchback and lower than a sedan,” said Pawan Goenka, president, farm equipment and automotive sectors for M&M.
M&M, he said, always had a plan to introduce a compact car ever since it partnered with Renault. “But we thought there is no point in launching one more product in the crowd, till we decided to get into a new segment.”
The Verito platform sells 700-800 units a month. M&M is hoping to double this number with the launch of the Vibe. So, it has created an annual capacity of 35,000 units for the platform, which can be expanded further.
M&M does not have plans for a petrol variant of the Vibe though as it does not yet have a smaller petrol engine of its own. But it is looking to further expand the range by launching an electric version of the Verito.
The Logan was launched in 2007 under the Mahindra-Renault joint venture, but was renamed the Verito in April 2011 and now carries the M&M badge. Last year, the company refreshed the Verito with a few changes.
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