With petrol prices hiked again today and fears remaining about price volatility of the deregulated fuel, auto manufacturers in the country are expecting a jump in demand for diesel-driven passenger vehicles.

Oil marketing companies, reeling under huge losses due to high crude price in the international market and the rupee depreciation, raised petrol prices today by Rs 7.50. But diesel prices, which are still regulated, were left untouched.

Soaring fuel costs and its expected scarce availability in the future has led utility vehicle market leader Mahindra & Mahindra to explore opportunities in the unconventional space powering new vehicles, such as sports utility vehicles (SUV) and mini cars.

The Mumbai-based company is simultaneously working on concepts such as full hybrids, battery-powered powertrains, bio-diesel, fuel-cells and hydrogen-powered engines.

An expected drop in sales may prompt Mahindra & Mahindra to cut scheduled capacity expansion plans, if the government goes ahead with the imposition of additional tax on diesel vehicles, according to the country’s biggest maker of sports utility vehicles.

M&M president (automotive and farm equipment sectors) Pawan Goenka on Tuesday said that the city-based company would be “affected like anybody else” if the diesel tax comes in

NEW DELHI: Mahindra and Mahindra (M&M) on Monday launched the world's first hydrogen-fuel-run three-wheeler HyAlfa that will ply in Delhi soon.
"As part of its mobility initiatives, Mahindra has aimed at providing alternative fuel technology solutions and the HyAlfa is another step towards it," said Pawan Goenka, president of the company's automotive and farm equipment sectors.

The company did not divulge the price of the vehicle which was unveiled at the Auto Expo here.

MUMBAI: Mahindra Solar One, a joint venture between the Mahindra Group and Kiran Energy, plans to invest 1,000 crore in solar power generation to build a capacity of 100 megawatts over the next two years, continuing the trend of large business houses investing heavily in the sector. "Our target is to be among the top three players in the solar industry in the next five years," Anand Mahindra, vice-chairman and managing director, Mahindra & Mahindra, told ET.

“Just imagine travelling from Connaught Place to Delhi international airport for an energy cost of Rs 10 and doing so in air-conditioned, climate controlled comfort in your own car without emitting a single molecule of harmful gases.”

With that preamble, Dr Pawan Goenka, President – Automotive Sector, Mahindra & Mahindra, set the stage for unveiling the concept electric car – NXR – from Mahindra Reva. The company, he said, was working on an integrated ecosystem to provide that kind of a transport solution.

Music blared and white smoke swirled in the cavernous Tata Motors hall at the Delhi Auto Expo as an excited crowd milled near a stage displaying the company's new hybrid car.

Most, though, were craning their necks to catch a glimpse of the carmaker's new gas-guzzling Safari off-roader being launched on the other side of the hall. Few seemed to notice the sparkling green-technology vehicle behind them.

Car makers are increasingly seeing sport-utility and multi-purpose vehicles tailored to Indian conditions as a growing opportunity in the country, where the buyer, they say, is prepared to pay more. More than a dozen sport-utility vehicles or SUVs were unveiled on Thursday as the Eleventh Auto Expo started with domestic manufacturers Maruti Suzuki, Mahindra and Mahindra (M&M) and Tata Motors revealing their products and concepts in the market segment.

Ambiguity over diesel pricing and possibility of additional duty on diesel cars have forced several carmakers, including market leader Maruti Suzuki, to go slow on or even abandon their expansion plans in the fastest-growing segment for India’s automobile industry.
In the past few months, demand for diesel cars has gone through the roof with the gap between prices of diesel and petrol widening as much as . 25 per litre compared with a price gap of . 9.00-9.50 in June 2010. Almost every car powered by diesel now has a waiting of more than 3-6 months.

Tata Motors on Thursday launched its revamped version of multi utility vehicle (MUV) Sumo as Tata Sumo Gold in Pune.

It is available in four variants GX, EX, LX & CX priced at Rs 5.23 lakh onwards (ex-showroom, Pune). It has BSIII and BS IV 3.0 litre diesel CR4 engine, delivering 85 PS power which is also available in turbo engine.