M&M cuts new Mahindra Scorpio price

Auto major Mahindra & Mahindra (M&M) launched the new Mahindra Scorpio in four variants, on March 6, 2009.

Photo: New Mahindra Scorpio in Mystique Purple

At the time of the launch, the company slashed the price of the Mahindra Scorpio by Rs 34,000-70,000.

After the price cut, the prices of the new Mahindra Scorpio variants range from Rs 7.21 lakh to Rs. 9.2 lakh, ex-showroom Delhi.

The company also upgraded the Mahindra Scorpio to meet Bharat Stage 4 norms, nearly 13 months before they are enforced.

The Bharat Stage 4 norms are an emission standard with an objective to bring  Indian norms close to European norms.

At the time of the launch, the company’s president (automotive sector), Mr Pawan Goenka, said that M&M had, however, increased the price of its latest utility vehicle Mahindra Xylo, which was launched in January 2009.

The hike ranges between Rs 10,000 and Rs 12,000 per unit.

“There are three major reasons for the price cut for Scorpio. The reduction in commodity prices being the first. There has been a significant drop in commodity prices from the December 2007 level,” he said.

He also said that M&M had learned a lot about how to reduce prices from the making of the Mahindra Xylo.

“Also, when the plant capacity goes up, you save,” Mr Goenka added.

He said that M&M has done value-engineering on the Mahindra Scorpio, and was passing on the benefits to its customers.

A senior M&M official was quoted as saying that the company is sprucing up its utility vehicle portfolio to cater to consumers across the market spectrum.

Pawan Goenka also explained that the company is looking to reposition the Mahindra Scorpio to maintain the brand. The mHawk engine used in the Mahindra Scorpio, will now be employed across the board.

M&M aims to produce 100 Mahindra Scorpios per day. The new Mahindra Scorpio will be produced at the company’s Nashik plant.

The price of the new Mahindra Scorpio VLX will be lower by Rs 70, 000 at Rs 9.2 lakh and the low-end LX model will cost Rs 25,000 less at Rs 7.2 lakh.

Since the launch of the Mahindra Xylo, M&M has witnessed around 25% of cannibalization between the two SUVs.

M&M sold around 84,000 utility vehicles this financial year, till end-February 2009, as compared to last year’s 85,000 units.