Mahindra & Mahindra (M&M), the country’s biggest sport utility vehicle (SUV) maker, is working on smaller fuel-efficient petrol engines to power its future growth, likely to be driven by overseas markets.
M&M wants to reduce its dependence on diesel-enabled engines and offer new engine options, according to a top company official. Now, most passenger vehicles of M&M are diesel-driven, stated Business Standard.
With the help of AVL of Austria, a consulting and powertrain systems development company, it is developing petrol engines. It sells SUVs like Scorpio, Bolero and Xylo.
Smaller fuel-efficient petrol engines are much sought after in markets like the US, Europe, west Asia and Africa. Tighter global emission norms and high fuel costs have compelled many automotive companies to go for smaller engines and smaller vehicles.
Mahindra is developing new models, including a mini Xylo, which could require petrol engines for particular markets. It has also developed a diesel-driven, pick-up version of the Scorpio for the US market, but may explore a petrol engine for it, too.
Many companies in India like Maruti Suzuki, Hyundai Motor, Nissan offer diesel variants for their models, but these models carry huge premiums over their petrol variants.
Like M&M, Honda Motor Company is developing small diesel engines, which can be used in emerging and developed markets such as India.