The company will launch the TUV300, which will be available only as diesel option, this week. It is looking to take on the likes of Ford's EcoSport and Renault's Duster that are priced between Rs 7.88 lakh and Rs 13.54 lakh (ex-showroom Delhi).
"With the TUV300, we will be enhancing our position in compact utility vehicles segment. It will not only add to our overall portfolio but will help us gain both volumes and market share without cannibalising our other existing products," M&M President & Chief Executive (Automotive) Pravin Shah said.
Dispelling 'misconceptions' that the TUV300 will replace the company's top seller Bolero utility vehicle, Shah said, "It is a completely newly developed, true blue SUV targetted at different segment of customers, while Bolero continues to be our best seller meeting transportation needs in semi-urban and rural markets mostly."
Commenting on the significance of the new model, he said the company did not have a major presence in the compact SUV segment, while M&M's forte has been in the bigger UV segment, with models such as the Scorpio and XUV500.