Mahindra XUV300 launched at starting price of Rs 7.90 lakh

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New Delhi | Updated: February 15, 2019 7:05:09 AM

Mahindra & Mahindra (M&M) on Thursday launched its new sub-compact sports utility vehicle XUV3OO in the price range starting from Rs 7.90 lakh (ex-showroom) for the petrol variant and Rs 8.49 lakh (ex-showroom) for the diesel variant.

Mahindra & Mahindra, automobile sector, automobile industryMahindra & Mahindra

Mahindra & Mahindra (M&M) on Thursday launched its new sub-compact sports utility vehicle XUV3OO in the price range starting from Rs 7.90 lakh (ex-showroom) for the petrol variant and Rs 8.49 lakh (ex-showroom) for the diesel variant.

The SUV — under four metres in length — will be built on the Ssangyong Tivoli’s X100 platform but with a reworked design and brand new engine. “A full vehicle development of this kind costs around Rs 1,500 crore. Because we did a platform sharing with Ssangyong, we are about 25% cheaper,” Rajan Wadhera, president, automotive sector, M&M, said.

XUV3OO will be competing with Maruti Suzuki’s Vitara Brezza, Tata’s Nexon, Ford’s EcoSport and Honda’s WR-V. While Brezza’s and Nexon’s starting price for diesel variant is Rs 7.40 lakh and Rs 6.90 lakh, respectively, XUV3OO is priced at `8.49 lakh. Ford Ecosport comes at `8.49 lakh (diesel variant).

Pawan Goenka, managing director, M&M, said, “We have redefined what base variant is. Our base variant today is what few years ago would be considered top variant used to be and our price reflects that and if you take that into account, I think we have fairly managed aggressive price.”

The subcompact SUV segment constitutes 60% of the total utility vehicles sold in the country. In the April- January period, 7,64,995 SUVs have been sold.

For the 10 months from April-January, Mahindra de-grew by 1.6% year-on-year at 1,85,212 units in the utility vehicle segment while its market share fell by 100 bps to 24%. Overall, M&M has been losing market share to Tata Motors and Hyundai.

While revealing the name of XUV3OO, Veejay Ram Nakra, chief of sales and marketing, M&M, had said that the subcompact SUV segment is the most competitive space with sales between 35,000-40,000 units per month. For the last five years, the segment has grown at over 40% CAGR (capital annual growth rate).” At present Mahindra offers TUV3OO and KUV1OO in the segment. “With our latest offering XUV3OO, we are filling the gap in our product portfolio and hope to raise our market share from the current 9-10% to somewhere between 15-20%,” Nakra added.

Analysts with Kotak Institutional Equities observed in their report that XUV300 is there volume segment and would hardly cannibalise sales of M&M’s existing products.

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Commenting on the Indian automotive industry, Anand Mahindra, chairman, Mahindra Group, said, “The Indian automotive market is evolving and the Indian customer is moving up from a small vehicle into the higher segment and want better driving experience. Its not that the customers don’t have the money. The recent slowdown in the automotive industry occurred due to sentiment for a variety of reasons. Cars are about sentiment. So it is conceivable that more the exciting products come out in the market, the more potential there is in the market to revive.”

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