Mahindra launches its first global SUV at Rs 10.8 lakh

The XUV 500 projected by Mahindra as its first global SUV has been launched at a very competitive price of Rs 10.8 lakh,  reports CNBC-TV18's Swati Khandelwal Jain gets behind the wheels.

M&M wants to race ahead in the SUV market with its new XUV 500. On one hand, it's priced the premium model competitively between Rs 10.8 to 12 lakh while on the other, its packed it with features that are aligned with global standards.

So here's the result- an SUV that is going to compete with the Toyota Innova and Tata Aria on the pricing front. However, at the same time can also share a platform with the more expensive Toyota Fortuner, Ford Endeavour or Honda CRV.

The handling and ride quality is way superior to any other Mahindra car so far and even on fuel efficiency it scores to other players as this 2.2 litre diesel engine promises to give a fuel efficiency of 15 kms per litre.

Mahindra admits there will be some cannabalisation of the Scorpio's sales but is happy to grow its 60% market share in the SUV space in India. The company has spent over Rs 650 crore on developing this new platform and aims to produce 2000 units a month out of its Chakan plant.

Going ahead it hopes to launch more such products and variants in synergy with its Korean acquisition Ssangyong.

Pawan Goenka says, "Will use Ssangyong capabilities to develop more power trains etc."

Next, the company hopes to drive beyond India and introduce the XUV 500 in South Africa, followed by a launch in Australia, Western Europe & the Americas.