Project Scorpio: The Making of India's First Indigenous Sports Utility
Vehicle
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ICMR HOME | Case Studies Collection
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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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.
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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...
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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.
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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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