Indian car maker launches fuel-efficient SUVs

Mumbai-based Mahindra & Mahindra (BOM: 500520) launched versions of their Scorpio and Bolero sports utility vehicles with "micro-hybrid technology."

Known as the FuelSmart system, the technology allows the vehicle engine to turn off automatically when idling or in neutral. The engine restarts when the clutch is pressed.

Pawan Goenka, president of M&M's automotive sector, said the new technology is expected to bring average annual fuel savings of 5 percent. The company is said to be planning to incorporate the FuelSmart system into its other high-end vehicles.

"This pioneering technology is very relevant to India," Goenka said in a release. "It was specially created keeping in mind the heavy traffic congestion drivers have to face on our roads today."

The fuel-efficient system adds only Rs. 3,800 ($77 USD) to the cost of the vehicle, Goenka noted.

The fuel-efficient SUVs are priced at Rs. 6.5 lakh to Rs. 6.97 lakh ($13,150 to $14,100).

Goenka said the company doesn't plan to export the vehicle because it's focused on the domestic market. M&M previously announced plans to bring diesel-electric versions of its pickup trucks to the United States in 2010.

The FuelSmart system was developed by M&M's research and development team, with help from German automobile parts maker Bosch.

At the Dow Jones Alternative Energy conference today, Bosch chairman Peter Marks noted that the United States is now very involved in shifting toward more fuel-efficient vehicles due to higher fuel prices. Bosch said the company is also heavily promoting clean diesel and emissions-free technologies.