M&M looks to create a new segment in e-SUV market with XUV400

Mahindra will declare the pricing of the model closer to its launch in January

Mahindra and Mahindra (M&M) is looking to create a new segment in the e-SUV market with the XUV400. This is company's first electric SUV offering that is set to go on sale from January 2023, its  top official said. 

As the  maker of XUV 700 and Scorpio models pursues its strategy in the personal EV segment at an accelerated pace, it would finalise plans for a new facility in the next three-six months, said Rajesh Jejurikar, executive director – farm and automotive sector, M&M.

The XUV4OO, which takes on the Tata Nexon EV, claims to have a range of 456 kilometres (as certified by the Automotive Research Association of India), the highest in the C-segment e-SUVs. 

Tata Motors’ Nexon EV and Nexon EV Max have a range of 312km and 437 km, respectively.

Based on the XUV300, the model marks a fresh start to Mahindra’s EV innings in the personal segment. It would be followed by XUV.e and BE (born electric) range from 2024 onwards. 

The company expects as much as 30 per cent of its sales to come from EVs by 2027.  

It has five electric SUVs in the works, which will be sold under two distinct brands — XUV and BE.

M&M aims to leverage the strong presence of the XUV brand in the market to gain acceptance.

The EV penetration in the C segment of the SUV market, which sells an average 32,000 units per month, is less than 1 per cent with two small players.

It is close to 4 per cent in the B-segment of the market, which sells an average 60,000 units a month, he said.

“There is a big volume upside available. The idea is to create the market, that’s why the XUV400 becomes an important milestone in our EV journey,” said Jejurikar.

Mahindra will announce the pricing of the model closer to its launch in January. “We see potential to easily sell around 3,000 to 5,000 units per month if priced at Rs 18 lakh, implying Rs 10 per cent upside potential to our overall SUV estimates,” wrote Kapil Singh of Nomura Research.

Under the current taxation regime, the large SUV segment is the sweet spot to launch EVs. This is due to the wide GST differential between EVs (5 per cent) and internal combustion engine ICE cars (50 per cent), Singh wrote. He added that EVs will turn out to be more attractive than hybrids in India.

When plugged into a 50kW DC fast charger, the batteries can be charged from 0-80 per cent within 50 minutes. When charged via a 7.2 kW/32A outlet, it takes 6 hours 30 minutes for 100 per cent charging. It takes 13 hours when using a standard 3.3 kW/16A domestic socket.

Meanwhile, Jejurikar said the company is talking to multiple state governments to understand the kind of incentives it can get. It would finalise plans in three to six months. “We will make our final decision based on that,” he added.