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Mahindra-Ssangyong working on a compact SUV - S102

Snapshot: The company has codenamed the compact SUV as S102 which will be produced at Mahindra-Ssangyong's Nasik plant

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Mahindra & Mahindra (M&M), India's largest car manufacturer, is currently working on a compact SUV, which will compete against the Ford EcoSport.

The company has code-named the compact SUV as S102 which will be produced at Mahindra-Ssangyong's Nasik plant. It is expected to be launched globally in the first half of 2015 and will be based on Ssangyong X100.  

The Mahindra-Ssangyong S102 will have a 1 litre turbocharged petrol engine with variable valve timing and direct injection which is said to offer good fuel efficiency.

Pawan Goenka, ED and president of M&M 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 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.

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

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