Will not launch a petrol variant for NuvoSport: M&M

Mahindra and Mahindra (M&M) has launched its new NuvoSport compact sports utility vehicle (SUV) in India at Rs 7.35 lakh, ex-Thane showroom price. In an exclusive interview to CNBC-TV18's Farah Bookwala Vhora, Pravin Shah, President and CEO-Automotive Division of the company, says M&M has launched this car with 6 variants which will be manufactured at its Nashik Plant. "This is a first SUV in this class which has an automated manual transmission (AMT) which meets the dual need of city and outside city drive requirements," he adds. NuvoSport, which is to replace Quanto, accounts for the fastest growing category amongst utility vehicles (UVs), he adds."Any new product addition has really expanded the Mahindra's presence and also its volume; so, we expect the same thing to happen with the launch of Nuvo Sports," Shah says.In the entire market, compact SUVs alone accounted for 44 percent of total UV sales in FY16, Shah says, adding that M&M has no plans to launch a petrol variant of the same.Below is the verbatim transcript of Pravin Shah’s interview with Farah Bookwala Vhora on CNBC-TV18.Q: What is the pricing strategy of the new launch NuvoSport?A: This is a true sporty and stylish SUV as compared to the others. I won’t compare with others. Also it has flexible seating, it has the most power engine, its widths and the height is quite different as compared to the others products what you named. Added to that, the comfort, safety and various other features which has been part of this product offering is quite attractive at this price front. We personally feel it is not straight comparable in terms of what this product can deliver. In addition, this product has substantial improvement in its ride and handling which does not take away the customer's requirements of not compromising on ride and handling. All in all, this product has many good features. Also, this is a first SUV in this class which has an AMT which meets the dual need of city and outside city drive requirements. Q: What are our projections as far as sales numbers goes for this particular product and is this really going to cannibalise the sales of the TUV300 as well?A: Let me say that always as and when we have launched our new products this is the question everybody has asked. However, the proof of the pudding is in eating and as I have said any new product addition has really expanded the Mahindra's presence and also the volume. So, we expect the same thing to happen with the launch of Nuvo Sports. There will be very little cannibalisation as what one can expect. However, this product is going to meet the different segment need and hence as what we think and as what we plan this will surely add to our volumes and helps us to maintain our leadership. Q: Why is it that you have decided not to go ahead with the petrol engine despite the fact that you started the petrol engine production with the KUV and would the Nuvo Sport be exported to countries in and around the Indian market as well?A: So far as petrol engine is concerned, we have already gone on record to say that we have robust plan. At this point in time we personally feel this product has the right amount, 100 HP drive line with the matching transmission including the AMT. To us this is the right product for the customer's need of having a sporty vehicle as their ownership. So far as exports are concerned, we have plans to take the same product to begin with the countries like Sri Lanka, Nepal, Bangladesh and depending on the pull from the different markets we will explore opportunities for taking this product to the other markets.