Project Scorpio: The Making of India's First Indigenous Sports Utility Vehicle

            
 
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Case Details:

Case Code : OPER046
Case Length : 14 Pages
Period : 1997-2004
Organization : Scorpio
Pub Date : 2005
Teaching Note : Available
Countries : India
Industry : Automobile

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Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

The Scorpio Project

The Scorpio project was very important for M&M. It was banking on Scorpio to help it shed its image as a manufacturer of vehicles for rural use and to break into the urban market. As a result, it went all out to ensure that nothing was left to chance in making Scorpio a one-of-a-kind vehicle in the Indian market.

M&M set up a new plant at Nashik in Maharashtra to manufacture Scorpio. The plant was set up at an estimated cost of $120 million and had a production capacity of 40,000 units on a two-shift basis.

Three new world class lines were set up at the plant by M&M's suppliers to manufacture components: a completely automated press shop, set up with help from Fukui of Japan with dies imported from Fuji; an automated line for producing jigs and fixtures in the body shop developed with Wooshin of Korea; and a state-of-the-art Trim Chassis Final (TCF) line with a world class tester line, built in collaboration with Fori Automation, USA, for vigorous testing of various aspects of the vehicle...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Launch and After

Scorpio was launched on June 20, 2002. Initially the company offered three models - two of diesel and one of petrol. The vehicle created a lot of interest in the market.

Some were fascinated by Scorpio's sporty looks; others were interested in gauging the performance of India's first indigenous SUV. At Scorpio's launch, Mahindra said, "We are extremely proud of the Scorpio and are sure that it would make customers and car makers think seriously about the sports utility vehicle segment. We at M&M have anticipated the potential of the SUV segment and believe that the strong value proposition the Scorpio offers would make it a winner."

His expectations were fulfilled when Scorpio became the preferred SUV in the Indian automobile market.

Exhibits

Exhibit I: Annual Financials
Exhibit Ii: Scorpio's Specifications
Exhibit Iii: Cost Breakup of Project Scorpio
Exhibit Iv: How Scorpio Compared with Competition


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