Mumbai, May 31: Mahindra & Mahindra Ltd (M&M) and French car maker Renault have signed an agreement to explore the possibility of using Renault petrol engines for M&M's planned Scorpio utility vehicle, a senior M&M official said on Wednesday."We are seriously looking at a Renault petrol engine for our Scorpio," said Mahindra & Mahindra managing director Anand Mahindra.
He added, "We have signed an agreement for doing a feasibility study on the Scorpio before taking any decision." M&M shares closed at 250 on the Bombay Stock Exchange (BSE), on Wednesday, an increase of Rs 22.25.
Mahindra said that the company wanted to have a strong petrol engine for the Scorpio because of highly competitive market conditions. Scorpio is targeted for launch in mid-2001.
M&M officials said that they expect to produce 20,000 Scorpio units in the first year of production. M&M already has an alliance with Ford Motor Corp and holds a 22 per cent stake in Ford's Indian subsidiary.
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