Mumbai: Utility vehicles major M&M on Monday replaced its struggling compact SUV Quanto with the NuvoSport that comes with a 1.5-litre diesel engine, same as the former, but at premium pricing and new positioning.
The home-grown auto firm has been struggling with Quanto, its first under-4-meter model, since its September 2012 launch. The new compact UV sports a 1.5-litre diesel engine developed on the third generation mHawq100 platform, same as its successful SUV Scorpio is built on, and commands a price of Rs 7.35 lakh for the base model (ex-showroom Thane) which goes up to Rs 9.76 lakh for the top-end AMT version.
"The NuvoSport will replace the Quanto," Pravin Shah, President and Chief Executive, M&M, told reporters here. Shah, while launching the NuvoSport that comes in three variants, was repeatedly asked about the fate of Quanto. When asked about the failure of Quanto, Shah said the product was launched in flat 18 months as a compromise between time to reach the market and a world-class vehicle.
"So, as far the product was concerned let me admit that it was a compromise between reaching the market on time and a great product. "But one should appreciate that we created an entirely new category of sub-4-metre UV in the domestic market, which since then has become the most competitive and the fastest growing segment, commanding 44 per cent market share within the compact UV segment in FY16, which was just about 12 per cent in FY12," Shah said.
Whether the company expects some cannibalisation of its another successful model, the TUV300, which also comes with a 1.5-litre diesel engine but at considerably lower price points, Vivek Nair, marketing head, said "both the vehicles are positioned differently. But if there is some cannibalisation, that is okay with us. Our objective is to offer a wide variety of choices to customers."
"The NuvoSport is feature-rich, sporty SUV with bold styling built on the same new generation platform as the Scorpio. The new vehicle is available at dealerships from today," Nair added. Shah said the company has spent Rs 115 crore in developing the NuvoSport, which took shape at its Chennai R&D and Design Centre over a period of two year. Asked about the market response since booking was opened a fortnight ago, both Shah and Nair declined a direct answer or provide figures.
"We have an installed capacity of 1,500 units a month for the new model at our Nashik plant and we are confident of selling those many units," was all Shah proffered.
