Mahindra-SsangYong's compact SUV may hit market by 2015-end

Mahindra will start afresh with a grounds-up compact SUV to take on the highly successful Ford EcoSport by 2015 end as the Quanto has failed to make a mark to the segment. The co-developed SUV with SsangYong, ET learns, is codenamed S102 and will be one of the first products to come out of Mahindra-SsangYong's joint platform project. The S102 is based on SsangYong's X100, and will be globally launched in the first half of 2015. The Mahindra's offspring is likely to make its way into the market by end of 2015 or beginning 2016. This new model is expected to be manufactured at the company's plant in Nashik.

What is interesting is, Mahindra-SsangYong is developing a compact 1 litre turbocharged petrol engine with variable valve timing and direct injection in line with Ford's Ecoboost engine, which can produce equivalent power of a much bigger vehicle, but can deliver higher fuel efficiency.

Pawan Goenka, ED and president of M&M's automotive & farm equipment businesses confirmed the development and said the synergy between them, is a win-win situation for Mahindra and Ssangyong. Joint sourcing and joint development is one area where both M&M-SsangYong have made considerable progress.

"We are jointly developing engine family comprising of 6 different engines, but the big one is the new product based on X100 platform. I think people, begin to see the value of it and that will only grow," said Goenka. On the Ecoboost competing engine, Goenka says, both the companies are in the process of making the decision, and if go ahead is given, it will be ready in three years time. Goenka said part of the development of the engine will happen out of India, and partly in South Korea.

"We are just in the process of making the decision, to develop the technology for a series of engines that we talked about. If it was for Mahindra or Ssangyong alone, we probably would hesitate to do it, as the total amount of money required for doing the direct injection petrol is quite high. But if we pool ourselves together, then we can do it," added Goenka.

Goenka did not quantify exact savings on account of joint development, but said both the companies could potentially save tens of millions of dollars.

The company has already sourced a new automatic transmission, which will be used both for Mahindra and Ssangyong products. The Indian-South Korean duo is also working on a small Trans-axle - a component which is used for front wheel drive transmission. Due to joint sourcing, M&M-SsangYong are saving about 5-7% on the material cost. 

Goenka said there are various body types possible on the X100 platform. ET learns the project S103 is very quietly discussed and it could be a crossover or MPV built on the X100 platform to take on Maruti Suzuki Ertiga and MPVs from Honda and Hyundai in the future.