MAHINDRA & Mahindra Ltd intends to spend Rs 20 crore in backing the `Scorpio' brand, the company's new multi-utility vehicle, but has decided against a `brand ambassador'.
However, the company will spend money on "communicating the brand", through TV commercials and customer and media meets, company officials said at a press conference here today.
While the company is now producing around 500 vehicles a month, it proposes to ramp up production soon. The plant that has been set up to produce the Scorpio can manufacture 2,500 vehicles per month.
The total cost of the Scorpio project is estimated at Rs 550 crore.
But the company set off Rs 150 crore of this cost against the credit in the share premium account (part of the reserves). Therefore, technically, only Rs 400 crore needs to be recovered from sales.