Homegrown sports utility vehicle (SUV) manufacturer Mahindra & Mahindra has capitalized on significant investments in automotive technology to aggressively price its SUVs, according to a top company executive.
Mahindra is the largest buyer of automotive technology in India, allowing the company to equip its vehicles with the latest features, such as advanced driver assistance systems (ADAS), while offering a substantial cost advantage over rivals, said Rajesh Jejurikar, executive director and chief executive, auto and farm equipment sectors, M&M.
The revamped XUV3X0, with a starting price of ₹7.49 lakh, is the most affordable option in the compact SUV category, and is set to compete with the likes of Maruti Suzuki Brezza and Hyundai Venue. Despite its low price, it boasts a range of features that make it an attractive choice for budget-conscious buyers.
In comparison, Maruti Suzuki’s Brezza starts at an ex-showroom price of ₹8.34 lakh, while Tata Motors’ Nexon begins with an ex-showroom price of ₹8.15 lakh.
Mahindra plans to manufacture 9,000 units of the XUV3XO on the same production line as the XUV400 EV. With additional investments, it can increase capacity to produce up to 10,500 units per month, Jejurikar said.
“We are currently the fifth largest player in this SUV sub-segment where annual volumes are close to 600,000 units. We want to become the largest or second largest players in the segment in the next three years.”
The XUV3XO will be Mahindra’s smallest offering. However, the company doesn’t rule out a smaller vehicle, but going smaller won’t be “true to its DNA”, he added.
The XUV3XO, which underwent significant upgrades from its predecessor, the XUV300, was developed at a project cost of ₹650 crore, including costs associated with setting up production for the model.
“We’ve done everything possible (to win in this segment) and to create a proposition which creates the right to win. Comparative right to win doesn’t come only on a price and doesn’t come only on a product and doesn’t come only out of technology or features. It’s a combination of getting it all right. And we think we have”, Rajesh Jejurikar, executive director and CEO, Mahindra & Mahindra told Mint.
“There are many technologies in which we are the volume leader. We are the largest buyer of [this automotive tech]. When you look at our product portfolio, we have more tech on our XUV700 than anyone else, and we sell 75% in the highest version. So we are the biggest buyers of tech in India, not any other SUV maker”, Jejurikar told Mint, adding, “How many players till now have brought in these technologies? We were the first ones to bring in ADAS and we buy a large volume of technolgies that power connected technologies like our adrenox. We call it the silver box. So both of our key models have a very high percentage of sales from the high-end variants”, he added.
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Published: 29 Apr 2024, 10:30 PM IST
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