Mahindra to Introduce Quanto SUV

Mahindra to Introduce Quanto SUV

NEW DELHI--India's Mahindra & Mahindra Ltd. 500520.BY -0.52% will introduce the Quanto -- its smallest sport-utility vehicle yet -- on Sept. 20, and it expects sales to steady at 2,000 units a month, a senior executive said Thursday.

"Initially, we expect higher orders for the Quanto, but it should stabilize at 1,500-2,000 units per month," said Pawan Goenka, president of Mahindra's automotive business.

The Quanto, based on Mahindra's Ingenio vehicle platform, measures less than four meters in length. Cars or SUVs that measure up to four meters in length qualify for 12% excise tax, provided that they also have a maximum 1.2-liter gasoline engine capacity or up to 1.5-liter for diesel engines.

Larger vehicles have a 24% excise tax.

Mahindra currently manufactures the Xylo utility vehicle on the same Ingenio platform.

Mr. Goenka declined to give the engine specification of the Quanto.

He said also that Mahindra will introduce the Rexton SUV -- which will be the first vehicle from its unit in South Korea, Ssangyong Motor Co. 003620.SE -0.97% -- before India's upcoming festival season.

Many Hindus consider the period -- which will run from October through December this year -- lucky for making purchases.

Speaking on the sidelines of an industry conference, Mr. Goenka told reporters also that the Mumbai-based company will decide within the next six months on whether to set up an assembly factory in Russia.

"We are in serious dialogue with a distributor for the model we want to follow [for selling vehicles in Russia]," he said.

"We should hopefully decide in 4-6 months. Once we finalize our plan, it will take another two years for us to assemble vehicles and start selling them," he added.