M&M pumped Rs 150 cr into new age XUV500

Homegrown auto major Mahindra & Mahindra has made an incremental Rs 150 crore investment in the new age XUV500, a top executive said on Tuesday.

Talking to Deccan Herald, Mahindra & Mahindra Senior Vice President Vijay Nakra said, “We have invested close to Rs 150 crore. This is the incremental investment Mahindra has done for taking the XUV500 to the next level and introducing the new age XUV500. This is apart from the few thousand crore in investments done at the first launch of XUV 500 in 2011.”

Nakra was in the city to roll out an updated version of XUV500. He said the launch of the SUV would further strengthen the company’s position in the SUV segment, where it currently commands over 40 per cent market share.

“If you look at the overall passenger and SUV category, in the last three years the SUV category is growing faster than cars...the lines between SUVs and cars are becoming blurred,” Nakra said.

“The compact SUV is becoming a very attractive category and segment...and the maximum launches are happening here. Those who are considering a car are now considering an SUV... because the customer is able to get the same feel of driving a car, but with the power of an SUV,” Nakra added.

To cater to the needs of all customers, Mahindra plans to launch nine models — including two all-new compact SUVs, besides refreshes of current products — in the current fiscal as part of its plans to strengthen its position in the passenger vehicle segment.

On rural sales, Nakra said, “As far as rural sales are concerned for Mahindra, about 36 per cent of our volumes come from rural areas. All of us are aware that the rural market cannot be treated as a second cousin. Consumers are very well-informed. We get tweets from customers in Hindi. That’s the level of awareness about technology in rural India.”

“India is broken into 6,000 tehsils. Our focus strategy is to tap at least 3,000 tehsils. At the moment, we have 1,700 touch points across the country,” Nakra added.

The updated version has sports-themed features, including electric sunroof, push-button start, six-way adjustable seats, and six airbags. Till date, Mahindra has sold 1.26 lakh XUV500 units and aims to sell 3,000 units per month of new age XUV500.

It is powered by 2.2-litre, 103 kW (140bhp) m-Hawk engine that delivers 330 Nm of torque, and gives a mileage of 16 kmpl (ARAI certified).