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Mahindra to source engines from Renault

Mahindra & Mahindra (M&M), India's largest producer of multi-utility vehicles (MUVs), will procure petrol engines from French carmaker Renault for its new multi-utility vehicles, M&M said in a statement on Tuesday.

Production of new engines, which will be used in M&M's new Scorpio model of MUVs, is likely to commence before the year-end, the statement said.

It also said the opening up of the Indian economy had made it possible to procure components more cheaply from the world's best manufacturers.

Renault Group is one of the sixth largest automobile manufacturers globally after its acquisition of Nissan and the Dacia and Samsung brands.

India on Saturday lifted import restrictions on more than 700 products ranging from cars to watches as required by the World Trade Organisation.

M&M executive director and president Alan Durant also said the narrowing difference in cost of petrol and diesel fuel in India may boost demand for petrol-powered MUVs.

M&M is India's largest MUV maker and the second-largest manufacturer of light commercial vehicles.

Shares of M&M closed 1.88 per cent higher on Tuesday at Rs 121.50 while the benchmark Bombay index ended up 1.09 per cent.

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