Mahindra & Mahindra, one of the top automotive companies of India, recently added another jewel to its consumer portfolio in the form of XUV500. This vehicle is considered by many to be an entry level luxury SUV, though its pricing places it within the reach of the masses. Launched in three variants that are priced between Rs. 10.8 and 12.88 Lacs, this car is available in two-wheel and four-wheel drive mechanisms. The Cheetah-inspired design of the car boasts of the trademark Mahindra grille, while the interior features of all three variants can put any entry level premium luxury SUV to shame.
According to the company, the name of the car is pronounced as 'XUV five double oh' to accentuate its oomph factor. No wonder that the company is targeting the youth again, which had lapped up the sporty looking Scorpio when it was launched in 2002. The body lines and dominant look of the new SUV make it an instant head turner so much so that buyers are migrating from Mahindra's own Scorpio to the XUV500.
India's largest auto manufacturer in terms of revenue, Mahindra, has set up a production unit, that has capacity of 2000 units, in Chakan, Maharashtra. However, the company would soon have to expand production operations considering the demand for this car. The company had to put bookings on hold as 8000 people booked this SUV within 10 days of its launch. It is selling the car in five cities at present and has said that it will not increase the distributor network considering the current demand and supply ratio. Pawan Goenka, president of the automotive division of M&M said that buyers will have to wait at least 17 weeks before new the batch of vehicles will be delivered.
Mahindra is looking to foray into the international market with XUV500 by unveiling this car in the South African market, though launches in Europe, South America and Australia are also on the cards. The manufacturer will certainly be hoping to script its international success story with this SUV, since its international sales are quite marginal as compared to the domestic figures. However, considering that the domestic demand of the vehicle is very high and production capacity is low, the company may have to put the international launches on hold, for now at least.
The tremendous demand of the car was something that was not precedented by even the manufacturer, though it was obviously confident that the car will help in warding off competition. In fact, Anand Mahindra, the head of Mahindra group had quipped “With further liberalisation in India, huge competition around the world, a threatened western world and every multinational now making redoubled efforts to target India, can Mahindra survive, can they take a seat at the high table of the global auto industry?” To his own question, he had responded with confidence, “Our answer to that is the XUV parked on the first floor”.
Therefore, it can be said that M&M will aim to set new benchmarks with this car and consolidate its pole position in the market, something it did almost a decade ago with Scorpio.
