SUV maker Mahindra and Mahindra has made its first push into India’s small car market to compensate for increasing competition in the 4×4 market.
SUV sales have held up strongly in India over the past year, even though sales of small cars, which account for most of the passenger vehicle market, have slumped.
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M&M has launched the Verito Vibe, a compact sedan, expecting small car sales will rebound in the next fiscal year. The new model, which will go head to head with rivals from dominant Maruti Suzuki and Hyundai has a starting price of INR563,000 (US$10,000).
Pravin Shah, head of Mahindra’s automotive division, told reporters: “Verito Vibe gives us the opportunity to play in the large and highly competitive compact car segment.”
M&M accounts for every other SUV sold in India but its share in the segment fell to 48% in the fiscal year ended 31 March from 56% a year ago, according to the Society of Indian Automobile Manufacturers (SIAM).
In the passenger car segment, which excludes utility vehicles and vans, the company last year held less than 1% of the market.
