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With XUV300, Mahindra and Mahindra eyes 20% share in compact SUVs

Mahindra will be offering the XUV300 in petrol and diesel variants

Shally Seth Mohile  |  Mumbai 

Mahindra & Mahindra

(M&M) is looking to corner 15-20 per cent market share in the competitive compact segment with its about-to-be-launched offering — the It will also launch an electric version of the model in 2020.

Based on the Ssangyong Tivoli platform, the sub-four metre, five-seater model will compete with Ford Ecosport, and and go on sale in the first half of February. “The XUV500 is a very successful model. The Cheetah-inspired model is really liked by consumers. Therefore, we thought it makes sense to take the heritage of the model forward. Though the platform is coming from Ssangyong, the design is unique in every sense,” said Pawan Goenka, managing director, With the exception of South Korea and China, where Ssangyong has a strong presence, can sell the model in all other markets.

Mahindra will be offering the in petrol and diesel variants. This could include the 1.5-litre diesel engine and a newly developed 1.2-litre G80 turbocharged petrol engine. As of now, Mahindra will not offer an automatic version.

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For a segment that is showing signs of sales cooling off and saturation, M&M’s entry could be delayed, said analysts. “It’s not going to be easy, considering that the segment has established models like the Brezza, said Puneet Gupta, associate director, IHS Markit. A volume of 7,000 to 8,000 units a month will be tough, he said. A lot, he added, will depend on the pricing. Also, once Mahindra dealers start retailing the Ecosport as part of the deal between the two firms, there will be potential cannibalisation, Gupta said.

But Mahindra is confident. “Depending on the value proposition and the price as well as the brand’s positioning, there is still space for another model in the compact segment,” said Veejay Nakra, chief of sales and marketing at the automotive division of

Mahindra has learnt it the hard way. In the absence of a contemporary designed model that can pose a challenge to rivals, Mahindra lost market share in the utility vehicle segment — first to Renault and Ford and then to Maruti Suzuki. Launched in 2016, the had turned out to be a runaway success.

First Published: Thu, December 20 2018. 00:23 IST