With XUV 3XO’s bookings crossing 50,000 units within 60 minutes, Mahindra and Mahindra (M&M) is drawing up a blueprint to ensure that the sub-compact (under four-metre) sports utility vehicle (SUV) does not see months-long waitlists. Speaking after the company's Q4FY24 earnings call, Rajesh Jejurikar, ED and CEO, M&M Auto and Farm Equipment Services, said that a prospective customer, who could be a first time buyer, will not wait endlessly for the XUV 3XO as he has multiple options in the market.
“We are aware that when first-time buyers want a car, they are are not going to wait for months. That's something we are very alive to. The nature of this buyer is different from the nature of Thar (lifestyle SUV) buyers, who don't mind waiting as there's nothing like that in the market,” said Jejurikar.
At present, Tata Motors’ Nexon is the market leader in this segment, with sales of 1,71,697 units in FY2023-24, per industry data . Maruti Suzuki Brezza is number two, with 1,69,897 units, followed by Hyundai Venue at third spot, with 1,28,897 units.
Jejurikar revealed that M&M has already produced more than 10,000 units of this model and will commence deliveries on 26th May. He also said that the company has already enhanced the XUV 3XO’s production capacity to 9,000 units per month, which is higher than the numbers for the outgoing version ( XUV 3OO).
“We already have the inventory, and with a very short lead-time and minimal investment, we can go up to 10,500 units (per month). Of course, if the numbers go higher than that, we will ramp up the output further,” added Jejurikar.
He also acknowledged that the company is very mindful that if the waiting periods are high, it may lead to higher cancellations.
“We will have to keep up the momentum on the ground to drive demand, because it can't be a static customer list. If you're not delivering, they're going to drop out and buy something else. That's pretty clear to us," explained Jejurikar.
The company reaffirmed its plans to roll out nine SUVs, seven of which would be ICE models. While some models will be replacing existing product lines, some are tailiormade for the overseas markets.
“There are ICE and EV portfolios that are getting developed, which will enable us to globalise over the next six to seven years. We'll take our time, and build market by market. But we need globally competitive products. When we say new ICE products, we mean it may be replacing existing models, but built on a totally new platform,” said Jejurikar.
Regarding its Born Electric range of products, he said the company is all set to roll out the first model by the first quarter of next calendar year. Talking about positioning, he noted that it would be targeted at a new set of buyers, who are looking for aspirational electric cars at reasonable price points.
“I would put it as an attitude, or psychographic, of people who want to stand out, do things differently, experience new things, and are hungry for the latest tech. This product is going to come with tech which is unseen in vehicles at way higher price points. We have been seeing a similar profile even among our ICE customers,'' averred Jejurikar.
While the company has already launched its maiden EV XUV 400, which is based on the same platform that underpins XUV 3OO (now 3XO), its ground-up EVs will be priced above Rs 15 lakh.
“Ideally, we don't want the Mahindra ICE customer to move to our EVs. We are hoping to attract those we haven't been able to so far, but who have the same psychographics. Then it's a win-win. Of course, there may be some cannibalisation, but we think that there is enough untapped opportunity for a vehicle of this type, which we have not been able to leverage so far with even the XUV700. This is a quantum leap over XUV700,” said Jejurikar.
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