Mahindra India is all set to make its debut in the small car market as it is planning to launch hatchback variant of its Mahindra Verito model by the end of September 2012. So far little is known about the hatchback as no spyshot has shown on the entire web. But, sources said that company is planning to keep the car’s length upto 4 meters in length so as to take advantage of duty relaxation. It will be done by reducing the length of boot from the Verito car. There are few benefits for small cars in India, which has been offered by the Indian government. Availing the benefits of lower excise duties on small car in India, the company could sale the car in lower prices.

Where the Mahindra Verito CS will be playing spoilsport for Maruti Swift Dzire, the Verito based hatchback has a long array of competitor right from Maruti Swift to Ford Figo and lots of other cars. But, if Mahindra wants to avail the benefits of duty reduction benefits then it has to fulfill the duty reduction regulations. If the length of Mahindra hatchback would be around 4 meter than it would go for petrol engine measuring under 1.2 litre capacity. Only then it could take the advantage of duty reduction benefits. It is one part, but the other part is that in India, the demand for cars with diesel engine has been growing since the prices of petrol are touching new high every year. So, the small car lovers could keep their fingers crossed for the launch of Mahindra’s first small car.

Besides, Mahindra’s Verito Sedan has been doing well in terms of volumes in the Indian market. Earlier Verito belonged to French automaker Renault. But, Mahindra purchased the rights to manufacture Verito Sedan in India. It has been relaunched as Mahindra Verito and it has been doing exceptionally well since then, media reports suggests. Sources said that Mahindra’s small car would face tough competition as the Indian market is full of small cars variants which have been launched by different national and companies from other parts of the world.