Aug 22, 2013 06:03 PM IST | Source: CNBC-TV18

M&M to launch cheaper XUV 500 model in festive season: Srcs

Automobile major Mahindra and Mahindra plans to launch a scaled down and cheaper version of its premium sports utility vehicle (SUV) XUV500 by festive season, sources informed CNBC-TV18.

M&M to launch cheaper XUV 500 model in festive season: Srcs

Automobile major Mahindra and Mahindra plans to launch a scaled down and cheaper version of its premium sports utility vehicle (SUV) XUV500 by festive season, sources informed CNBC-TV18.

Sources said that the company is already working on the stripped down version which will be built on existing XUV platform. The new offering will be priced lower than existing XUV 500 which is currently priced at Rs 12,00,000. The new model will co-exist with premium XUV 500.

Also read: M&M hopes to cash in on rupee fall with new export strategy

The company plans to reduced the ground clearance in this new model by greater than 30 mm. It must be noted that M&M had earlier announced to reduce the ground clearance of XUV 500 from 170 mm after the government levied three percent tax on  SUVs that have a ground clearance of more than 170mm.

In the recent upgrade of XUV 500 also, the company has reduced the ground clearance and has cut down price of the SUV by Rs 30,000 as a result of tax savings. XUV 500 sales declined 44 percent on year to 5774 units in the first quarter.

The company is also exploring option of reducing ground clearance of other models. 

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