Mahindra Verito Manufacturing Strategy

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Mahindra Verito (Mfg)

The Mahindra Verito, formerly known as Logan is Mahindra’s flagship car in the sedan entry level segment (C- seg). The car is manufactured at the Chakkan plant in Maharashtra. Plans are being made to shift out to a new plant coming up in Chayyar, about 100 Km from Chennai. The average monthly sales of Verito is about 1250/month ever since the rebranding. It is a bit less than forecasted by M&M. Daily production is about 70 cars per day.

Not a lot of considerable changes were made in the car (both internal and external) after the shift from Logan to Verito occurred. A slight difference was that the overall height was increased by a measly 6 mm and the turning radius improved by 15 cm. The higher end model had a larger length but it is important to note that Verito does not come under the sub 4 metre category. This means that not a lot of changes were made in the manufacturing process at the plant for the car. Another important point to note is that largely the suppliers also remained the same. Though the Joint Venture (JV) with Renault did not work out, Renault still supplies some of the more critical components. It is interesting to note that the engine is supplied by Renault. The entire engine is imported from Renault’s manufacturing units based in Romania and Spain but attracted heavy duties to be imposed on it. Now Renault is planning to open an engine manufacturing unit based near Chennai with Nissan from where the engine for Verito will be supplied. This will be a huge price saver for Verito.

The excise duty exemption for the sub 4 metre category of cars spurred Mahindra into action to compete in this segment. Tata Indigo and Dzire have already moved into this segment and plans are already up for Verito to be launched for this category. It’ll be priced at about Rs. 5.3 lakhs. Plans are still being drawn whether the production of this car will happen at Chakkan or Chayyar or both.
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