The state-of-the-art engines would also be introduced in Renault models this year and would be Euro III compliant and upgradable to Euro IV, according to a M&M release issued on Tuesday.

The multi-utility vehicle manufacturer said, initial performance of the concept prototypes has been encouraging as the engine has been specifically developed and adapted for M&M. However, certain peripheral items will be indigenously sourced, making the engine very cost effective, given the level of technology. The commercial production of these engines are expected to begin before the year end. This implies that the commercial launch of this engine globally and in India would be around the same time. Scorpio is to spearhead M&M'S entry into the manufacture of the next generation of vehicles and would eventually become the platform for all of its MUVs.

According to M&M executive director and president (automotive sector) Alan Durante," A continued reduction in the differential between petrol and diesel prices in India, may lead to the development of significant demand for petrol powered MUVs in the future. When this happens, M&M will be ready with a very contemporary option. M&M has been making inroads in the urban MUV segment with the Bolero. Since the urban markets place more emphasis on comfort and features, a petrol MUV would be an appropriate addition M&M's portfolio."

M&M has been developing the Scorpio at its Nasik plant. The company has already invested over Rs 500 crore in the project.