April 30, 2021

Mahindra to discontinue XUV500 after launch of XUV700 subsequent 12 months

Mahindra & Mahindra will cease manufacturing of the XUV500, with the launch of the XUV700. Apparently the UV main unveiled the model identify of its much-awaited SUV, constructed on the W601 platform, because the XUV700, on the day Hyundai showcased the Alcazar, it is seven seater SUV.

Specialists say it is extra to do with alerting the potential buyer that there’s one other mannequin in the identical phase to be launched quickly.” It is a technique to inform the client to weigh selections earlier than making a shopping for determination,” stated a vendor who didn’t want to be quoted.

Sellers additionally stated that Hyundai has performed it protected as there’s lower than a month earlier than it launches and begins retailing the Alcazar within the Rs 13-20 lakh worth vary. This quick hole , helps in high of the thoughts recall of a model.

That is not the case with the XUV700 which is slated to be launched solely in Q2 FY2022. This 7 seater, shall be manufactured on the firm’s manufacturing facility at Chakan in Maharashtra.

XUV7OO, is the subsequent era and shall be considerably higher than XUV5OO when it comes to journey and dealing with, NVH, seats, ergonomics and aesthetics. I perceive that after the XUV7OO launch, they may quickly halt manufacturing of XUV5OO. I’m guessing they may introduce decrease variants of the 7OO later and launch it as XUV5OO, says Kaushik Madhavan, vice-president, mobility, at consultancy agency Frost & Sullivan.

The XUV700, probably the most awaited choices from Mahindra is certain to hit the candy spot with prospects, says Veejay Nakra,CEO, automotive,M&M.

The XUV500 was a runaway success when it was launched a decade again . Offlate gross sales have been averaging at round 1500 – 1700 items a month. Whereas the semi-conductor scarcity has hampered manufacturing and supply schedules of this mannequin, sources say that the XUV500 has misplaced its preliminary spark , perhaps due to the opposite trendier and newer fashions out there on this phase.

In addition to, Mahindra has not been in a position to hold tempo with competitors on its supply schedules ( not too long ago with its Thar), say specialists.

Experiences point out that the brand new off-roader’s ready interval is the best at 10 months and it is anticipated to ramp-up its manufacturing to cater to its prospects’ wants.

Firms usually maximise manufacturing of fashions which add extra to their profitability. However now, automotive vendor Nikunj Sanghi stated, producers “are inclined to give attention to such fashions the place volumes are excessive.

Fashions of the Mahindra UV portfolio such because the XUV 300, Bolero and Scorpio are seeing enormous traction.

In the meantime, in FY 22 homegrown UV participant Mahindra was on the quantity four place with a market share of 5.8%, Korean automobile maker Kia is shut on its heels on the fifth place with a market share of 5.7%. Whereas Kia has grown in market share by 3% via its quick promoting merchandise Sonet and Seltos, Mahindra has de-grown from 6.7% to five.8%, which is the corporate’s lowest ever market share in passenger autos.

The corporate expects provide challenges to stay for the subsequent two to 3 months previous to easing out step by step. Bolero volumes for March has been the best on this monetary 12 months and regardless of provide constraints the corporate has been in a position to ramp up manufacturing of Bolero Pik-up considerably through the month.