PROJECT SCORPIO Indias First Indigenous SUV

Indian Market
UV market share was 18% Car Market was 82%

Always car dominant market

But M&M was dominating in UV segment

Strengths of Mahindra
Dominant in the UV market. Known as tough, rugged, reliable &most suitable for

terrain
Had a huge market share in rural and semi urban

market

Strategy to look at urban customers

Project Scorpio team was formed. With average age of 27.

Customer needs were identified.

Benchmarking with world class SUVs. Buying factors were analyzed.

Customer expectations of B & C segment

Size and good looks. Latest technology. Affordable price. Thrill and passion in driving. Power of vehicle. Luxury.

Pre-launch strategy
All dealership looks were upgraded.

Training of sales and service personal at the

dealership. Sufficient test drive vehicles were made available at dealerships. Separate launch programs for press, vendors, dealers and staff. Based on market segments different versions were designed.

Development
Scorpio development did not stop at launch Re-launch of improved Scorpio

Mighty muscular Scorpio with M-Hawk engine.

Market Share of UV segment

Late 1990s- Once a market leader , now witnessing loss.

Now facing global competition

The Scorpio Project

New plant setup in Nasik spread over 120 acres Capacity 40,000 units annually on a 2 shift basis Set up cost - 120 million USD Infrastructure wise three new state of the art line were

developed for production

A unique process called IDAM was taken up Best in the world tie ups were done but in house

executions.

Integrated Design And Manufacturing(IDAM)

IDAM was foundation of

Idea- easier to make what you

MPDS
Dynamic Mfg system-

can sell than to sell what you made

Allowed the manufacturer to produce what customers wanted.

Flexible manufacturing

Aimed to streamlined delivery

of world class zero defect product

Entire system was automated

allowed large number of product mix

Ensure Final product of high

quality

Strategy
Competition with

Accent , Corsa, Ikon, Esteem Qualis, Safari, Sumo

Had to Adopt penetrative pricing stratergy SUV- Priced between Rs.5-7 Lacs Phased Launch Mumbai, Bangalore, Delhi & Chennai Within 4 months -- 20 cities Within a year

-- 50 cities

Scorpio Impact on M&M

Scorpio launched on June 19th,2002.

Mahindra was losing market share- share price Rs100 .

Launch of Scorpio, things started looking different 37% increase in revenue- from Rs. 1827 cr in 2002

to Rs. 2511 cr in 2003 Increase in profit -47 % Share prices in 2003 Rs 400 Recd many awards

Suppliers
M&M chose worlds top suppliers: Fukui, Fuji,

Wooshin, Durr, Lear, Visteon, Bridgestone etc. Suppliers did not play just an ancillary role A manufacturing rarity Innovative sourcing system to lower the cost M&M played the role of an integrator

Product Development Process

Cross-functioning method
Made sure there is zero manufacturing difficulties Project teams asked customers wanted

Cost targets with best quality achieved

Extensive testing and re-testing made Indias first

SUV unique