M&M plans petrol engines to fuel growth.

Mahindra & Mahindra (M&M), the country's biggest sports utility vehicle-maker (SUV), plans to develop a range of petrol engines to fuel growth. The move comes on the back of the automobile company's plan to foray into the US market.

Mahindra & Mahindra, the manufacturer of Scorpio and the biggest selling multi-utility vehicle, Bolero, has been selling vehicles strapped with diesel engines. It now plans to incorporate petrol engines for its Xylo range of multi-purpose vehicle later this year, sources closely involved with the development said.

AVL of Austria will develop the petrol engines for the company, which may range in capacity from 1.5 litres to 2.2 litres. Earlier, the company had announced plans to develop the engine jointly with a Europe-based engine-maker.

The petrol version of the Logan sedan, which Mahindra sells from its joint venture company Mahindra Renault, has been developed by Renault.

'There is a lot of demand for fuel-efficient, but powerful, petrol engines in the markets of the United States, Europe, West Asia and Africa. We will explore those markets with our new range of petrol engines, which are developed with the assistance of AVL,' said a senior M&M executive.

BS