Mahindra & Mahindra will stop production of the XUV500, with the launch of the XUV700. Interestingly the UV major unveiled the brand name of its much-awaited SUV, built on the W601 platform, as the XUV700, on the day Hyundai Motor showcased the Alcazar, its seven-seater SUV. Experts say it’s more to do with telling the potential customer about the soon-to-be-launched model in the same segment. …”The customer can weigh choices before making a buying decision,” said a dealer who did not wish to be quoted.
Dealers also said that Hyundai has played it safe as there is less than a month before it launches and starts retailing the Alcazar in the Rs 13-22 lakh price range. This short gap helps in top-of-the-mind recall of a brand, they say.
That’s not the case with the XUV700 which is slated to be launched only in Q2 FY2022. Already Mahindra is facing delivery delays of its latest launch, the Thar.
XUV7OO, is the next generation vehicle better than XUV5OO in terms of ride and handling, NVH, seats, ergonomics, and aesthetics. I understand that after the XUV7OO launch, they will temporarily halt the production of XUV5OO. I am guessing they will introduce lower variants of the 7OO later and launch it as XUV5OO, says Kaushik Madhavan, vice-president, mobility, at consultancy firm Frost & Sullivan.
The XUV700, one of the most awaited offerings from Mahindra is sure to hit the sweet spot with customers, says Veejay Nakra, CEO, automotive, M&M.
The XUV500 was a runaway success when it was launched a decade back. Off late sales have been averaging at around 1500 – 1700 units a month. While the semi-conductor shortage has hampered the production and delivery schedules of this model, sources say that the XUV500 has lost its initial spark, maybe because of the other trendier and newer models available in this segment.
Reports indicate that the new off-roader’s waiting period is the highest at 10 months and the company is expected to ramp up production to cater to its customers’ needs.
M&M today announced that its recently launched All-New Thar has crossed 50,000 bookings, within just 6 months of its launch. The company has fast-tracked the process of increasing production capacity both at its Nasik facility and at the supplier-end to meet the demand for the All-New Thar and reduce the waiting period for customers.
Companies typically maximize the production of models which adds more to their profitability. But now, automotive dealer Nikunj Sanghi said, manufacturers “tend to focus on such models where volumes are high.
Models of the Mahindra UV portfolio such as the XUV 300, Bolero, and Scorpio are seeing huge traction.
The company expects supply challenges to remain for the next two to three months prior to easing out gradually. Bolero volumes for March have been the highest in this financial year and despite supply constraints, the company has been able to ramp up production of Bolero Pik-up significantly during the month.