Mahindra to launch small car

India’s leading automotive brand,Mahindra & Mahindra (M&M) plans to launch a 1000cc small car at a price tag of Rs.2.5 – 3.5 lakhs.The company also plans to set up a new plant in Tamil Nadu for the very first time at an investment of Rs.800 crores.

Pawan Goenka,President of M&M automotive division had already informed that the company will launch two small cars namely a smaller version of Verito and another one small car both on the same in-house platform.The production of the cars is expected to start in 2013-2014.

The company has selected four primary vendors for its project codenamed “BRL” and has shared its prototype with them.The company has a mass customer base for its SUV Scorpio and the Verito around 1,500 sales in June. The small car would be a nice addition to Mahindra’s portfolio.