M&M’s XUV500 to prove that it is a world-class vehicle

M&M felt it was ready to fast-track its most ambitious project till date-building a SUV that could hold its own against the world's best.

MUMBAI: In early 2009 after launching the Xylo, a multi-purpose vehicle, the top brass at India's largest utility vehicle maker Mahindra & Mahindra (M&M) felt it was ready to fast-track its most ambitious project till date - building a sports utility vehicle (SUV) that could hold its own against the world's best.

Eighteen months later, the 'cheetah' or the XUV5OO was born amidst carefully-calibrated hype and rare customer frenzy in a slowing down automotive market.

That build-up and consequent anticipation has translated into 35,000 XUV500s roaring on Indian roads a year down the line -- and another 14,000 buyers waiting to get their hands on M&M's most advanced SUV yet.

The big question: what next from M&M? After all, it's been a steady progression for the UV maker who, till a decade ago, was known as maker of rugged and reliable vehicles, although not the most comfortable and contemporary in design and look.

The Scorpio changed all that by becoming the closest aspiring Indian consumers could get to a genuine SUV. Then came the Xylo, positioned as a UV with the comfort and convenience of the sedan.

To be sure, M&M has plenty lined up on the XUV500 platform-it is evaluating close to half a dozen iterations, including an automatic version, one with a petrol engine, a cheaper variant code-named W4, a souped-up extension dubbed W10 and a global MPV version code-named W203.

Pawan Goenka, M&M's president, automotive, declines to share details, but says: "We are doing market research right now. We will look at various vehicles: small ones, big ones, MPVs, cars...whatever makes sense. Everything is on drawing board, and all options are open as long as they do not dilute the XUV500's brand value. He adds that automatic and gasoline (petrol) versions are an imperative for overseas markets.

M&M claims the XUV500 is a success in India and that it outsells all sedans in the Rs 10-15 lakh price bracket. In the high-end SUV segment, the company says it has a share of over 60 per cent. Yet Goenka avers that the real success of the XUV500 will be when it is accepted in global markets. "We are only in the big league in India. We will arrive globally only when we get a decent market share from this product in some of the most advanced markets," points out Goenka.

The company had launched the SUV in South Africa along with its India launch, and sells 100-150 units every month. Over the last few months, the XUV500 has been launched in Australia and Italy; Chile is next.

"I will be able to define success if we are able to get consistently sell 500 per month in these four markets; that will give us a feeling that we are getting reasonable volumes and eventually to get 1,000 to 1,200 units per month from exports," adds Goenka.

M&M then plans to gradually penetrate Latin America and the developed markets of Europe over the next 12-18 months.

Source:- Economics Times