India's largest utility vehicle maker, Mahindra & Mahindra on Monday launched a new compact car Verito Vibe at Rs 5.63 lakh to Rs 6.49 lakh (ex-showroom Mumbai) excluding Octroi.

Developed with an investment of Rs 60 crore on the Renault's Logan platform, the sub-4 metre Verito Vibe shares 80% common parts with its elder sibling Verito sedan and is available only in the 1.5 litre dci diesel option. M&M claims, Verito Vibe has the looks of a hatchback but offers features and space of a sedan.

With the Vibe hatchback and Verito sedan, M&M will now be catering to 1 million unit compact car space. With this hatchback, M&M intends to take on Maruti Suzuki Swift, Swift Dzire and Honda Amaze. M&M says in terms of price Vibe is Rs 40, 000 cheaper than Maruti Suzuki Swift and almost Rs 1.52 lakh lower than Honda Amaze.

Pawan Goenka, president, automotive & farm equipment sector Mahindra & Mahindra said, 'With the launch of Vibe we will be catering to a larger pie of compact car space. Most of the sub-4 metre cars have been derived from a hatchback, which leads to compromising on space but since the Vibe has been created out of a sedan, it offers the best in class space and features and offers significant value to the customers.'

Goenka said with the Verito sedan, M&M is currently selling about 700 to 800 units a month, with the addition of hatchback, the company intends .