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Mahindra considers downsizing to meet new ruling

Mahindra considers downsizing to meet new ruling
Rachit Hirani Rachit Hirani Friday 18 December 2015, 11:23 AM

Mahindra and Mahindra is considering reducing the capacity of its engines that exceed 2000cc to meet the new ruling that doesn’t allow sales of new diesel powered cars with over 2-litre capacity in the capital region. Currently, apart from the TUV300, the Quanto and the Verito series, every other Mahindra passenger car model has a larger engine than stipulated.

Dr Pawan Goenka, Executive Director of Mahindra and Mahindra has said, “We are working to see what we can do with the vehicles that are otherwise banned. We will examine redesign to come below the two-litre limit.”For it to be able to sell its flagship model, the XUV500, Mahindra must reduce the engine capacity – currently at 2179cc – to under 2-litres. “We are concerned about the inventory with dealers, which is in the order of Rs 100 crore. We do not have a solution for that yet. Dealers are unduly coming under pressure,” added Dr Goenka.

At the moment, Thar, Bolero, Scorpio and Xylo, in addition to the XUV500 of course, have engines that displace more than 2000cc. If the ruling is extended past 31st March or applied across the country, carmakers like Mahindra, Toyota and Mercedes will suffer serious loses. And it’s only sensible that these makers have a strategy in place to counter this ruling.

 

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