M&M looks at T Nadu for Ingenio ride

NEW DELHI: Mahindra & Mahindra is evaluating Tamil Nadu for setting up a greenfield manufacturing facility. A high-level delegation led by vice-chairman Anand Mahindra meeting the state chief minister M Karunanidhi on Thursday.

Industry sources said a new manufacturing plant may become necessary since the company has already said it plans to launch a new entry-level multipurpose vehicle (MPV) called Ingenio in the next two years, which will be positioned somewhere between the Scorpio and the Bolero.

The new launch may need a fresh manufacturing facility; both Scorpio and Bolero are at present being manufactured at M&M’s Nashik facility.

The high-level M&M delegation included automotive business president Pawan Goenka and executive director Arun Nanda, besides Anand Mahindra.

A company spokesperson confirmed to DNA Money the meeting with Karunanidhi, but declined to make any further comments. The Ingenio is expected to be an MPV with an indigenously developed engine. Automobile expert Tutu Dhawan said for the new MPV to become successful, pricing would be crucial.

“There is space for every thing in the market provided the pricing is right. Take the case of Swaraj Mazda, which has just launched the Rhino in the Punjab market at a little over Rs 4 lakh. If M&M wants to remain competitive in the MPV market, it must price Ingenio close to Rhino.”

At present, while the base model of Mahindra Bolero comes for about Rs 5 lakh whereas the base model of Scorpio is priced close to Rs 7.20 lakh (ex-showroom Delhi).

Analysts said the Ingenio could lead to a pricing rejig with Bolero’s positioning getting altered.